China Lending, a non-bank direct lending business serving micro, small and medium-sized enterprises (MSMEs), currently underserved by commercial banks in China, announced the expansion of its service offerings with the launch of its financial leasing services.

The financial leasing services will be operated through its two wholly-owned subsidiaries Xinjiang Xin Quan Financial Leasing and Ningbo Ding Tai Financial Leasing, which are registered in Khorgas Boarder of Xinjiang Uygur Autonomous Region, and Ningbo of Zhejiang Province, respectively. Both subsidiaries will benefit from a corporate income tax exemption for their initial five years, and half exemption for following five years.

Through the two financial leasing subsidiaries, the company will provide MSMEs with customized financial leasing solutions in the industries, including manufacturing, agriculture, environmental, energy, healthcare and public transportation. These industries have favorable investment and technology projects, but are in need of funds for the equipment and technology.

Jingping Li, chairwoman and chief executive officer of China Lending, said, “Driven by the economic restructuring and supply-side structural reform implemented by the Chinese government, financial leasing services has seen rapid growth in recent years in China as more and more companies, including both buyers and sellers, rely on financial leasing services to implement scalable projects or businesses.

According to Research and Markets, there were 8,218 financial leasing enterprises in China conducting transactions valued at RMB 5.6 trillion ($89.6 billion) as of June 2017.”

Li continued, “We are committed to developing profitable financial leasing services operating in multiple industry verticals, leveraging our strong track record of helping SMEs through our existing direct lending business.  We firmly believe that we can capture our fair share of the fast-growing financial leasing services market in the coming years.”

Founded in 2009, China Lending is a non-bank direct lending corporation and provides services to micro, small and medium sized enterprises, farmers, and individuals, who are currently underserved by commercial banks in China. Headquartered in Urumqi, the capital of Xinjiang Autonomous Region, with a registered capital of $94.7 million as of December 31, 2016, China Lending is one of the largest direct lending companies in the region in terms of registered capital.