Bank of Shanghai to set up financial leasing company

A person walks past a branch of The Bank of Shanghai in Hangzhou, East China's Zhejiang province, Dec 11, 2013. [Photo by Long Wei/Asianewsphoto]

The Bank of Shanghai (BOS) is preparing to set up a financial leasing company with the related application sent to the China Banking Regulatory Commission, said Jin Yu, president of the bank.

The new financial leasing company will be set up in the China (Shanghai) Pilot Free Trade Zone, Moneyweek reported on Monday. Also taking part in the preparation is Shanghai International Port (Group) Co Ltd. In addition, SIPG bought 4.6 billion yuan ($760 million) of BOS equities by private placement recently.

Jin said the two companies plan to strengthen their cooperation in trade financing including supply chain financing in the FTZ. They will also try to explore new businesses in shipping finance.

By the end of 2013, 57 financial leasing companies and 241 subsidiary projects had been set up in the FTZ, with the total leasing asset amounting to more than $5.5 billion.

As China's largest shareholding limited company specializing in the operation of public terminals, SIPG covers about 5 square kilometers of the 28-plus sq km of the FTZ.