To fully leverage the role of financial support in the development of strategic emerging industries and to assist in the creation of a world-class frontier industry cluster in its Lin-gang Special Area, East China's Shanghai has acted.

A laboratory for the financial leasing has set up to serve integrated circuits industry.

A launch ceremony was held to mark the occasion on June 28 in Shanghai, according to local media reports.

The lab for financial leasing – serving the integrated circuits industry – is unveiled on June 28 in the Lin-gang Special Area. [Photo/WeChat ID: shlgguanweihui]

With the support and guidance of the Lin-gang Special Area Administration and the Shanghai Banking and Insurance Regulatory Bureau, the laboratory was established by three Shanghai-based financial leasing companies.

These were the China Citic Bank Financial Leasing Co, the China Merchants Bank Financial Leasing Co and Shanghai Pudong Development Bank Financial Leasing Co.

Leveraging the Lin-gang Special Area's role as an experimental base for banking and insurance and financial technological innovation, the laboratory will pilot the business of the financial leasing SPV (Special Purpose Vehicle) to serve the integrated circuits sector.

A tranche of cooperative agreements are signed at the launch ceremony. [Photo/WeChat ID: shlgguanweihui]

During the event, the first group of cooperative agreements were signed in the field of financial leasing SPV integrated circuit equipment leasing.

The innovative breakthrough in this business further is said to take advantage of the Lin-gang area's role as a "testing field" by focusing on the needs of the integrated circuits industry – making it another financial initiative to create a world-class frontier industry cluster.

Through asset transfers, risk isolation, reduced import tax burdens and the lower cost of funds, the initiative is expected to provide more in-depth and comprehensive financial support and services to promote the sustainable development of the integrated circuits industry.

The model is projected to help the integrated circuit industries to expand their equipment introduction, enhance technological capabilities and accelerate innovation.