Financial Leasing Go back »

2024-12-23 | All chapters

Summary:

Leasing companies in China previously faced the risk of an asset’s ownership being transferred or sold without their consent, leaving them unable to claim it back. To protect their ownership rights, leasing companies often practiced ‘double registration’ for leased vehicles, which increased their costs, thereby negatively impacting financing pricing. Since 2020, the Non-banking Financial Institutions Working Group has been advocating for improvements to the registration system in line with international practices by regularly communicating with Chinese and European authorities.

In early 2024, the registration system was improved, and regulators have confirmed that registering an asset once is sufficient to protect a leasing company's ownership rights (including for vehicles). It has significantly reduced the administrative burden for industry players.

Read the story in full in English and in Chinese.

Learn more about the Non-banking Financial Institutions Working Group.