Advocacy Actions
Policy Briefing on Yangshan Special Comprehensive Bonded Zone
Policy Briefing on Yangshan Special Comprehensive Bonded Zone
Read moreMeeting between Consumer Finance & NBFI Working Group and Shanghai Municipal Financial Regulatory Bureau to Discuss Issues Faced by European Leasing Companies amid COVID-19
On Friday 24th April, five leasing companies met representatives from Shanghai Municipal Financial Regulatory Bureau at the EU Chamber’s Shanghai Office
Read moreComments to MOFCOM and NDRC on Catalogue of Industries for Encouraged Foreign Investment (2019)
The European Chamber very much welcomes the MOFCOM's decision to collect opinions on the "Catalogue of Industries for Encouraged Foreign Investment (2019)". Upon careful study of the draft and consultation with its members, the European Union Chamber of Commerce in China has collated all member inputs and submitted suggestions to the MOFCOM for their consideration.
Read moreFollow up Discussion between EUCCC Financial Services representatives and the European Central Bank on the Outbreak of COVID-19
On 8th April, the EU Chamber facilitated a telephone call between representatives of A/C Member Banks and the European Central Bank (ECB).
Discussion between EUCCC Financial Services representatives and the European Central Bank on the outbreak of COVID-19
On 18th February, the EU Chamber facilitated a telephone call between representatives of A/C Member Banks and the European Central Bank (ECB) on the outbreak of the COVID-19 in China.
Read moreComments to CBIRC on Measures on Implementing Administrative Licensing Items for Non-Banking Financial Institutions
On 13th February, the European Chamber’s Consumer Finance and Non-Banking Financial Institutions Working Group submitted comments to the China Banking and Insurance Regulatory Commission (CBIRC) on Measures on Implementing Administrative Licensing Items for NBFIs (Draft for Comment).
Read moreComments to CBIRC on Interim Administrative Measure for Financial Leasing Companies
On 9th February, the European Chamber’s Consumer Finance and Non-Banking Financial Institutions Working Group submitted comments to the China Banking and Insurance Regulatory Commission (CBIRC) on Interim Administrative Measure for Financial Leasing Companies (Draft for Comment).
The Working Group addressed issues concerning financing costs, legal system related to financial leasing and after-sale leaseback, credit bureau system, business management, financial ratios, factoring and cross-border guarantees.
The Working Group gave detailed suggestions on how to improve operations for financial leasing companies:
• Banks are advised to provide medium-term financing, i.e. more than 5 years, to reduce pressure on customer cash flows with long-term assets (i.e., large machinery). In addition, we suggest that the concentration risk and transactions with affiliated parties to be soften in terms of the calculation method for concentration, point of time and average balances.
• The mortgage process for rental properties be improved to protect the ownership of the leasing company. In the after-sale leaseback transaction structure, the lessee is not required to issue a receipt (as a voucher to the bank) to the leasing company before making a payment to the bank. We recommend that customers who use a financial lease to complete their equipment purchase should receive a local government subsidy.
• A period to comply with rules for new start-ups in 2019-2020 would be welcomed.
• To facilitate financing for small and medium-sized enterprises, an easy-to-access and integrated credit bureau system should be open to equipment leasing companies to collect customer payment records and financial statements.
• Electronic signatures, direct debits and swipe with barcodes would be important measures to gather information and limit forgery and money laundering.
• The risk asset/equity ratio should be maintained at 1:10. Any reduction in this ratio change will have a significant impact on the ability of equipment leasing companies to finance small and medium-sized enterprises.
• Since European leasing companies are not allowed to obtain (i) cross-border corporate guarantees or (ii) cross-border bank guarantees (or even bank guarantees from their parent companies), the ability of TNCs to invest in new machinery and equipment in China is significantly limited. The Working Group recommends giving this situation a green light and a convenient process. It also recommends that the possibility of cross-border cash pooling to be explored further.
Overall, the Working Group welcome the CBIRC's efforts to strengthen the management of the financial leasing industry, and we can also feel some recent improvements in the financial leasing industry. We always believe that the financial leasing industry for China's economic development and financing of various industries can provide professional solutions, especially for small and medium-sized enterprises. Here, we are ready to spare no effort to share our international experience in all areas to help the Chinese economy further unlock its potential and momentum.
Meeting with Legislative Affairs Commission of the NPC Standing Committee and SCOFCOM on the Draft Foreign Investment Law
On February 22, 2019, the Legislative Affairs Committee of the Standing Committee of the National People's Congress and the Shanghai Municipal Commission of Commerce hosted a symposium to solicit opinions on the draft Foreign Investment Law. Representative of the European Chamber's Legal & Competition Working Group attended the symposium and presented members’ feedback and concerns.
Read moreEuropean Commission Vice President and New European Ambassador Meet with the Chamber’s Financial Services Working Groups
On 17th September, newly arrived European Ambassador Nicolas Chapuis and European Commission Vice President Valdis Dombrovskis discussed the realities of recent opening in the financial services sector with the Chamber’s banking, insurance and consumer finance working group chairs.
Read moreComments to MPS on the Regulation on Classified Cybersecurity Protection (Draft for Comments)
The European Chamber’s Cybersecurity and other relevant working groups submitted collated comments in response to the Ministry of Public Security's (MPS's) public consultation on the Regulation on Classified Cybersecurity Protection (Draft for Comments).
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