Background
Leasing companies in China previously faced the risk of leased assets—such as vehicles—being transferred or sold without their consent. To protect ownership rights, companies often resorted to ‘double registration’, which increased operational costs and negatively impacted financing pricing.
Since 2020, the Non-banking Financial Institutions Working Group has been advocating for registration system improvements aligned with international practices, through ongoing dialogue with Chinese and European authorities.
Result
In early 2024, China’s registration system was improved. Regulators confirmed that a single registration is now sufficient to protect a leasing company’s ownership rights, including for leased vehicles.
Impact
- Reduced administrative burden and compliance costs for leasing companies;
- Improved protection of asset ownership rights;
- Aligned China’s system more closely with international financing practices.
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