S&T Financial Leasing Firm Established
The first science and technology financial leasing company, Zhongguancun Science and Technology Financial Leasing Co., Ltd., has recently been approved by the Ministry of Commerce and State Administration of Taxation.
Recruitment was launched in Beijing on February 25. It offers 19 positions, including those of deputy general manager, department director, plus openings in the human resources and assets management staff. The company focuses on providing financial leasing services to small and medium high-tech companies.
The company is co-founded by Zhongguancun Development Group and five other companies. Among them, Zhongguancun Development Group invested 300 million yuan (US$48.2 million), accounting for 60 percent of total shares.
“Based on Zhongguancun Development Group, the company provides R&D, a producing and testing equipment rental service for small and medium-sized high-tech enterprises as well as financial services related to this equipment, all in order to solve the financial problems for small and medium enterprises and provide new financial instruments for an upgrade of the city’s industrial structure,” Sheng Zijin, chairman of the board of Zhongguancun Science and Technology Financial Leasing Co., Ltd. said.
The company features three characteristics. Firstly, it established a new model for cluster rent, promoting the development of the industry. On a second note, it established a new model of combining venture capital investment and leasing business. Finally then, it set up a risk compensation fund with the government. If the SMEs (the lessee) default on the agreement, the fund will carry out the compensation instead. After that, the fund enjoys the right of recourse provision.
From 2009 to 2011, the overall number of financial leasing companies in China increased from 117 to 286, and the amount of financial leasing contracts increased from 370 billion yuan (US$59.42 billion) to 930 billion yuan (US$149.36 billion), up 58.5 percent annually.
Source: This is Beijing