ICBC unit approved to sell 1.63b yuan ABS (2)

China's financial leasing service firms, which buy assets and lease them to clients who can't afford to buy them outright, have made wide inroads with under-funded companies in capital-intensive industries as the country's economy decelerates, Wu Hong, vice president of the China Banking Law Society, told the Global Times.

As of the end of September, the assets owned by China's 19 financial leasers operating at that time under the auspices of the CBRC were together valued at 730 billion yuan, 50 times higher than at the end of 2007, CBRC data show.

"But given that some 90 percent of CBRC-supervised financial leasers' financing comes from bank loans, the nationwide credit crunch China is experiencing has severely impacted the cash flows of these businesses," said Wu.

As the demand for financial leasing services expands in China, regulators have taken steps to provide them with more opportunities to diversify their fundraising operations, explained Wu.

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