Shanghai will further regulate illegal fundraising operations and cross-border transactions through leasing companies amid the national crackdown on financial risks, the city government said yesterday.
All domestic and foreign leasing companies registered in Shanghai will be targeted under a campaign that focuses on those affiliated to Internet finance companies, investment consulting firms, wealth-management companies and small-loan lenders, according to a notice from the Shanghai Commission of Commerce.
Shanghai recorded 1,216 leasing firms at the end of 2015, taking up nearly a third of the national number, according to data compiled by the Ministry of Commerce.
The campaign will scrutinize leasing firms' operations and examine whether firms faked leasing projects, used illegal leasing assets, posed as financial institutions and raised funds from the public without regulatory approval, the notice said.
The notice revealed that some firms had started to lease intangible assets, which will cause "risks and hidden troubles for the leasing industry."
Others who provided unauthorized loans, interbank loans, equity investment and cross-border investments will also be targeted, market insiders said.
The campaign will last till June 24 and include self-inspections and regulators' spot checks, the notice said.
More than half of the underlying assets of Chinese leasing companies are in aircraft, shipping, equipment and infrastructure.