Shenzhen government set up clear rules on establishing small-loan companies.
Under the Tentative Measures of Shenzhen for Trial Small-loan Companies (“Measures”) which was released recently, requirement for founders includes Small-loan companies registered in Shenzhen must be established by the legal-person enterprises which are duly incorporated in Shenzhen. And major founders must be the enterprises whose net capital exceeds RMB 50 million and whose asset-liability ratio must be no higher than 70%. The Measures also provides specific rules for business operation.
Small-loan companies are expected to be a positive supplemental element in the financial markets especially for individuals and small companies. (Feb 27th 2009)