The Board announced that Bank of Chongqing Co., Ltd. received the approval on establishment of Chongqing Xinyu Financial Leasing Co., Ltd. issued by the CBRC dated December 29, 2016, pursuant to which, the Bank, as the principal promoter, was agreed to establish the financial leasing company and the establishment work should be completed within six months from the date of approval. After the completion of the establishment work, the Bank will apply to the CBRC Chongqing Bureau for the operation approval in accordance with relevant regulations and procedures. The promoters are Qidi Holding, Tianshun Wall, Yijin Aluminum and the bank as the principal promoter. The financial leasing company to be established will conduct the principal business of financial leasing in Renminbi or foreign currencies. The proposed scope of business of the financial leasing company will be as follows: finance lease business; transferring and acquiring assets subject to finance leases; investing in fixed-income securities; accepting lease deposits from lessees; accepting fixed deposits of three months or more from non-bank shareholders; interbank lending; taking loans from a financial institution; overseas borrowings in foreign currencies; realization and disposal of residual values of leased properties; and economic consultancy. The specific scope of business of the financial leasing company will ultimately be subject to the financial license registration and business registration. The registered capital of the financial leasing company is proposed to be RMB 3 billion, which is divided into 3 billion shares of a par value of RMB 1.00 each. The initial investment arrangement was entered into by the bank and the other promoters on September 28, 2016.