China to cut trade fees, sup­port leas­ing firms

The Pak Banker - - BUSINESS -

BEI­JING: China aims to stoke growth in its fi­nan­cial leas­ing sec­tor by cut­ting red tape and waiv­ing re­quire­ments for min­i­mum reg­is­tered cap­i­tal, the cab­i­net said on Wed­nes­day. Faster growth could lower firms' bor­row­ing costs, spur cap­i­tal in­vest­ment and prod com­pa­nies to move up the man­u­fac­tur­ing value chain, the State Coun­cil said af­ter a weekly meet­ing.

High bor­row­ing costs that crimp spend­ing are a con­cern in China given the im­por­tance of in­vest­ment in driv­ing the econ­omy. The cen­tral bank on Tues­day cut in­ter­est rates for the fifth time since Novem­ber to lower the cost of fund­ing. Com­pa­nies that lease ships, planes, farm ma­chin­ery and med­i­cal equip­ment, among oth­ers, would be able to register their busi­ness and im­port or ex­port goods more sim­ply, the gov­ern­ment said in an online state­ment. Author­i­ties would also sup­port the cre­ation of more fi­nan­cial leas­ing firms that help the agri­cul­tural sec­tor and small- and medium-sized firms to in­crease in­vest­ment, the cab­i­net said. To sup­port China's wob­bly trade sec­tor, fees charged by the gov­ern­ment in re­la­tion to im­ports and ex­ports would "in prin­ci­ple only fall and not rise", the cab­i­net said.

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