BEIJING, Feb 2: China will allow commercial banks to again carry out financial leasing, a business they were required to withdraw from in 1997, state media reported on Friday, citing the industry regulator.

Both local and foreign banks will be permitted to set up financial leasing companies from March 1, the China Daily said, citing the China Banking Regulatory Commission.

Eligible investors should conform with various requirements, including a capital adequacy ratio of no less than eight per cent, according to rules posted on the commission's website.

The rule also reduced the minimum registered capital for a financial leasing company from 500 million yuan to 100 million yuan.—AFP