New financial leasing firm set up in FTZ

Dazhong Transportation Co, a major taxi operator in Shanghai, and investment company Shanghai Dazhong Public Utilities Co have set up a financial leasing venture registered in Shanghai's free trade zone.

The Shanghai Dazhong Financial Leasing Co, with a registered capital of 500 million yuan (US$80.4 million), signed deals with five domestic and foreign banks to secure a 3 billion yuan credit quota after it officially started operation yesterday.

It also signed leasing services deals with six logistics, construction, clean energy and information technology companies yesterday.

Simplified cross-border corporate cash management and funding rules will allow Dazhong Financial Leasing more freedom in serving Chinese companies' needs for equipment and capital when they expand overseas, said Yang Guoping, chairman of both Dazhong Transportation and Dazhong Public Utilities.

The new venture aims to lead the emerging cross-border equipment and funding needs by tapping the parents' strong capital background and FTZ's policy benefits, Yang said.

A statement from the joint venture said it will offer equipment and funding services to companies in the infrastructure, public transport, medical equipment, energy equipment, machinery and environment protection sectors.