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China to step up financial leasing to bolster economy

IANS  |  Beijing 

The State Council, China's cabinet, on Wednesday mapped out measures to accelerate development of financial leasing and make it serve the real economy better.

Accelerating development of financial leasing could ease financing difficulty and financing cost, spur investment on equipment and promote industrial upgrade, said a statement released after a State Council executive meeting presided over by Premier Li Keqiang, Xinhua reported.

The meeting demanded less red tape, including no minimum capital threshold for financial leasing companies to establish subsidiaries and easier procedures for leasing equipment like ships, farming machinery, medical devices and aircraft.

Development of leasing businesses involving high-end equipment imports, clean energy and people's livelihood should be speeded up. Establishment of leasing businesses for small enterprises and agricultural development should be encouraged, the statement said.

Export of equipment and international production capacity cooperation aided by financial leasing are encouraged, it said.

The meeting also called for making good use of the Internet, establishing markets for trading of leases and second hand equipment, and developing leaseback business.

The meeting encouraged local governments to provide incentives and risk compensation to guide financial leasing businesses to better serve the real economy.

The meeting also decided to lower central government charges and reset local charges in the import and export processes to relieve the burden on businesses and stimulate foreign trade.

Detailed charge lists of ports will be made public, according to the statement.

The meeting also discussed mass entrepreneurship, innovation, public services and poverty relief, based on appraisal of progress in these areas conducted by third parties commissioned by the State Council.

The meeting noted that third party appraisals, as an innovative measure in government administration, will continue to be used to assess the implementation of policies.

The meeting also decided to reform the system of technical posts for primary and high school teachers.

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First Published: Wed, August 26 2015. 21:44 IST