Shanghai witnessed a flurry of commercial collaboration at a conference on April 16 as foreign banks and Chinese financial leasing companies signed a raft of agreements.

The second Financial Leasing Asset Securitization High-Quality Development Conference saw increased investment in China's financial leasing sector, reflecting a shared vision for growth and development.

Leading institutions such as Sumitomo Mitsui Banking Corporation, the International Finance Corporation, Mizuho Bank, Natixis and the Bank of East Asia demonstrated their confidence in China's economic trajectory by committing to strategic partnerships with the domestic leasing firms.

The primary objectives behind the agreements are understood to help drive down financing costs, enhance the flexibility of services and boost overall support for the real economy.

In a separate but equally significant move, 12 major Chinese banks pledged 460 billion yuan ($63.02 billion) in additional investment and financing to Shanghai-based financial leasing companies.

The collective commitment — formalized during a signing ceremony at the conference — underscored the industry's robust growth potential and the banks' dedication to fostering a thriving financial ecosystem.

The conference also introduced the China Bond financial leasing corporate bond yield curve.

This pioneering nationwide benchmark — a collaborative effort between the Shanghai Financial Leasing Association and ChinaBond Pricing Center — represents a pivotal step towards enhancing pricing efficiency, liquidity and transparency within the financial leasing industry's bond market.

Also, amid the conferences proceedings, the launch of the SPIC Ronghe Leasing New Energy Phase 9 Green Asset-Backed Special Plan (Carbon Neutral) was launched as the first green leasing asset-backed security to debut on the Shanghai Stock Exchange.

Backed by assets recognized as green by the Shanghai Green Finance Service Platform, the initiative is in line with Shanghai's strategic vision to emerge as a global green finance hub, supporting environmentally sustainable projects and financial services.

The platform has established a green leasing section and currently includes 82 green financial leasing projects, involving over 11 billion yuan in financing.

Source: Shanghai Observer