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The first batch of Special Purpose Vehicle (SPV) companies has established branches in Liangjiang's Lianglu Cuntan Bonded Port. Authorities in Liangjiang and Chongqing have made efforts to attract companies to the port with the aim of promoting the aviation chain in the municipality.

Special Purpose Vehicle (SPV) companies consist of corporations, partnerships, trustees and non-corporate bodies established for the sole purpose of investing in private companies. They are unable to carry out any other trade activities.

According to Zeng Jin, the chief executive officer of Jinheng Finance Lease Ltd, the first batch of SPVs that have entered Liangjiang are mainly commercial aviation aircraft companies. "This year, local governments such as the Liangjiang administrative committee have made substantial efforts in attracting SPVs to Liangjiang," said Zeng.

Talking about the advantages of SPVs, Zheng said that "purchasing aircrafts from foreign countries will incur large amounts of tax, while SPVs will help save on tax."

In recent years, the aviation industry has developed rapidly in China as demand for new aircrafts in the country has expanded. The expanding market has provided a good development opportunity to the domestic aircraft rent industry.

Edited by Jacob Hooson