Financing Firms Finds its Home in Qianhai
To an industry that is relatively new in China, Qianhai saw more than 120 finance leasing firms had set up in the special economic zone which is bordered by Hong Kong and is boasting of advantages that will foster the faster development of the financing sector. Qianhai authorities never expected that these leasing firms to favor Qianhai and yet dozens of these so called leasing firms are setting up their headquarters in the zone.
During the Qianhai International Finance Leasing Innovation forum a first for Shenzhen and attracted participants from both home and abroad saw more than 80 finance leasing firms to be registered in Qianhai after the city rolled out measures last January to support the growing industry of finance leasing. These firms can gain access to cross border yuan loans at a minimal cost.
Interest rates in borrowing yuan loans from Hong Kong is as low as 3 percent as of last year and 4 percent this year, furthermore finance leasing firms are allowed to obtain yuan loans at a much lower rate than in other economic zones. These finance leasing firms are lending great support in the growth of the economy especially to the manufacturing sector of small and medium sized enterprises in which these firms lease equipment to SMEs that need equipment but could not afford getting one.