The Notice guides financial leasing companies to focus on purchasing leased assets which are their main business. Financial leasing companies are also required to further enhance the management of leased items and refine the niche market.

The Notice further clarifies the eligibility criteria for structures regarding as leased items. It requires that when financial leasing companies conduct business with structures as leased items, the structures should meet such pre-conditions as complete ownership, transferability, disposability, non-public welfare and economic value. It is strictly prohibited to use structures that clearly fail to meet the above criteria and that may increase debts of local governments as leased items.  

The Notice requires financial leasing companies to reduce the structure leasing business during the three-year transition period, and take reducing the business that does not meet the eligibility criteria into consideration in the first place.

(Source: Xinhua Net)