8. The Establishment and Development of Non-bank Financial Institutions

The “327” Treasury Bond Futures Incident refers to a deliberate speculative event that occurred on February 23, 1995. It involved a showdown between China Economic Development Trust and Investment Corporation, which went long, and Morgan Stanley, which went short, regarding the three-year Treasury bonds issued in 1992 and maturing in June 1995, listed on the Shanghai Stock Exchange.

“Several Opinions on Forming and Developing Enterprise Groups by the State Commission for Restructuring the Economic System and the State Planning Commission”. http://​www.​chinalawedu.​com/​falvfagui/​fg21829/​31802.​shtm.

“Notice of the People’s Bank of China on Issues Related to the Implementation of the ‘Administrative Measures for Enterprise Group Financial Companies’”, http://​www.​fdi.​gov.​cn/​1800000121_​23_​6818707.​html.

In China, leasing companies are classified into finance leasing companies and financial leasing companies based on differences in regulatory authorities. The former belong to general industrial and commercial enterprises and can be further divided into foreign-funded finance leasing companies and Chinese pilot finance leasing companies, which are managed by the Ministry of Commerce. The latter are managed by the China Banking Regulatory Commission (CBRC) and are considered non-bank financial institutions. In 2017, there were reports of the two types being reorganized and placed under the supervision of the CBRC, but as of June 2019, this had not been realized. Therefore, this section only pertains to financial leasing companies managed by the CBRC.