China Banking Regulatory Commission, Measures for the Administration of Auto Finance Companies

Promulgated: January 24 2008
Effective: as of date of promulgation

Main Contents: The revised Measures allow auto finance companies to engage in six more types of businesses:

(1) accepting deposits from dealers for loans for the procurement of motor vehicles and deposits from lessees for motor vehicle leases;

(2) upon approval, issuing financial bonds;

(3) engaging in interbank lending;

(4) providing motor vehicle lease financing services (with the exception of after-sale lease-back services);

(5) handling the sale and disposal of the residual value of leased motor vehicles; and

(6) upon approval, investing in the equity of financial institutions connected with auto finance business.

Related Legislation: PRC Banking Regulation Law, Dec 27 2004, CLP 2004 No.1 p.45; and PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21

Repealed Legislation: Measures for the Administration of Auto Finance Companies, Oct 3 2003, CLP 2003 No.9 p.34; and Implementing Rules for the Measures for the Administration of Auto Finance Companies, Nov 12 2003, CLP 2003 No.10 p.6