China Banking and Insurance Regulatory Commission: Financial leasing companies should establish policies for the management of leased assets and lessees, and regularly update them.

On December 5th, the China Banking and Insurance Regulatory Commission issued a notice on the issuance of the "Regulations on the Management of Financial Leasing Business of Financial Leasing Companies." It points out that financial leasing companies should establish and regularly update policies for the admission management of leased assets and lessees based on national policies and regulatory requirements, in conjunction with their own business development plans and risk preferences. Financial leasing companies should establish a due diligence system and management system, standardize due diligence operational procedures, clarify due diligence work requirements, and ensure the independence, authenticity, and effectiveness of due diligence. Financial leasing companies should objectively, fairly, and prudently investigate leased assets, lessees, guarantors, collateral, etc. through effective methods and standardized procedures, grasp the ownership and value of leased assets, understand the operating, financial, and credit status of lessees, guarantors, and other credit enhancers, and ensure the authenticity and risk control of financing leasing business. This notice was issued by the China Banking and Insurance Regulatory Commission on December 4th, 2025. The Regulations on the Management of Financial Leasing Business of Financial Leasing Companies are to be implemented and followed accordingly.