The General Office of the State Council issued a circular concerning the development of China’s financial leasing industry on Sept 7 to further boost and upgrade its economy.

The industry has in recent years witnessed dramatic development concerning market size and its role in economic upgrades and growth. But there is still a long way to go as it lags far behind developed markets.

According to the document, financial leasing will be an important tool in equipment investment and technology upgrades by 2020 and China will see a world-class industry with a group of leading enterprises and an effective regulation system in the future.

Aimed at promoting the development of the industry, the circular put forward targets and measures.

It aims to streamline management of the industry and establish a proper regulation system to cut restrictions which hinder development.

In addition to continuing development in aircraft, shipping, engineering machinery and other traditional fields, financial leasing companies will be encouraged to grow in information technology, high-end equipment manufacturing, new energy and public service sectors.

The circular stressed accelerating efforts in financial leasing services for medium, small, and micro businesses, strengthening the development of cross-border financial leasing services, innovating financial leasing business modes and enhancing regulation of the industry.

Legislation will be enacted to establish a fair, disciplined and well-regulated business environment for the industry.

The government will also improve fiscal and taxation policies to support the development of the industry by offering subsidies and risk compensation.

Financial institutions are encouraged to strengthen supporting efforts to companies which could also be able to finance from the bond market, foreign debt, foreign exchange and industry funds, expanding financing channels for the industry.

To develop the industry, a well-regulated statistical system and evaluation index will be built and more well-trained professionals will be needed, the circular noted.