21 August 2019

China expands consumer finance, CBRC says

China will allow entities in 10 more cities to set up consumer finance companies, an article on the China Banking Regulatory Commission (CBRC) website said Friday. The 10 cities include Shenyang, Nanjing, Hangzhou and Hefei, it said. A trial scheme for consumer finance companies began in Beijing, Tianjin, Shanghai and Chengdu in 2009. The new policy enables domestic non-financial companies to become major investors, with the minimum shareholding requirement for such investors lowered to 30 percent from 50 percent. The consumer loan ceiling was set at 200,000 yuan (US$32,826), the CBRC said. Meanwhile, eligible Hong Kong and Macau firms will be allowed to establish consumer finance companies in Guangdong province.

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