China is to allow the establishment of car finance companies, according to a draft proposal published by the People's Bank of China. Companies with at least Yn8bn in total assets and with profits for three consecutive years would be allowed to set up car finance ventures, providing they have capital of at least Yn500m.
General Motors has already found a domestic financial institution for a loan venture, Bloomberg said. Meanwhile, General Electric has been in talks with Minsheng Bank to form a car finance firm and Ford China has been in talks with several domestic banks to offer financing packages.