China loosens capital control for financial leasing firms at Tianjin FTZ

TIANJIN -- China has granted more freedom in cross-border capital use for financial leasing firms in the free trade zone in northern Chinese coastal city of Tianjin.

The city already leads the country in financial leasing business. Around 90 percent of airplane leasing, and all maritime engineering equipment leasing are carried out at Dongjiang Port in Tianjin, now part of the Tianjin FTZ.

Financial leasing firms within the FTZ have been given the green light for freer use of the Chinese currency, the renminbi, in cross-border financial transactions, including financing, cash pooling, and bond issuance.

Authorities have made the Chinese yuan convertible under the capital account on a quota basis.

China's foreign exchange regulator has also approved the establishment of a joint venture financial leasing company between China Minsheng Investment Corp and the Republic of Korea's Hana Bank in the Tianjin FTZ.

ICBC Financial Leasing Co Ltd, set up by state lender Industrial and Commercial Bank of China, brought back 5 billion in offshore yuan into its cash pool, thanks to eased controls on cross-border capital flow within the FTZ.