When importing the leased property, a foreign-capital leasing company shall comply with the currently effective provisions regarding the import of equipment by foreign-capital enterprises.

Article 16 For the purposes of preventing risks and guaranteeing the business operation security, generally, the risk assets of a financial leasing company shall not exceed 10 times of the total amount of its net assets. The risk assets shall be determined on the basis of residual assets, namely, the result after deducting the cash, bank deposits, national debts and entrusted leased assets from the total assets.

Article 17 A foreign-capital financial leasing company shall, not later than March 31 of each year, submit to the MOFCOM the business operation report of the previous year and the financial statement of the previous year upon audit by an accounting firm.

Article 18 The Lease Industry Commission of the China Foreign-capital Enterprises Association is a guild organization performing self-discipline management of the foreign-capital lease industry. The foreign-capital leasing companies and foreign-capital financial leasing companies are encouraged to join it.

Article 19 Where a foreign-capital leasing company or foreign-capital financial leasing company violates any law, regulation or rule of China, it shall be punished according to the relevant provisions.

Article 20 The establishment of a foreign-capital leasing company or foreign-capital financial leasing company in the Mainland by a company, enterprise or any other economic organization from the Hong Kong Special Administrative Region, Macao Special Administrative Region or Taiwan Region shall be implemented with reference to the present Measures.

Article 21 The provincial administrative department of commerce as mentioned in the present Measures refers to the administrative department of commerce of each province, autonomous region, municipality directly under the Central Government, city directly under state planning or of the Xinjiang Production and Construction Group.

Article 22 The power to interpret the present Measures shall be vested in the MOFCOM.

Article 23 The present Measures shall go into effect as of March 5, 2005. The Interim Measures for the Administration of Examination, Approval of Foreign-capital Leasing Companies issued by former Ministry of Foreign Trade and Economic Cooperation through Order No. 3 in the year of 2001 shall be abolished simultaneously.

Promulgated by the Ministry of Commerce on 2005-2-3

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