China allows auto financing firms to sell bonds
SHANGHAI, Jan 30 (Reuters) - China will allow auto financing firms to sell bonds and borrow from the nation's interbank market under revised rules which could help speed up the development of the fledgling auto loan market.
Auto financing companies take deposits from their domestic and foreign shareholders and invest in financial institutions that also provide auto financing services, the China Banking Regulatory Commission said in a statement.
Most Chinese and international auto makers, including General Motors GM.N and Ford Motor (F.N), have set up car financing arms to spur sales in China, where 6.3 million cars were sold last year, up 22 percent from 2006.
In November, Sino-U.S. car finance company GMAC-SAIC Automotive Finance Co and a Chinese trust firm won approval to launch China's first securities products backed by auto loans. (Reporting by Fang Yan; Editing by Anne Marie Roantree)
