An SUV of Chinese automaker Great Wall Motors is on display during an auto show in Sofia, Bulgaria, on Oct. 14, 2017.(Xinhua/Zhan Xiaoyi)
BEIJING, July 17 (Xinhua) -- The National Administration of Financial Regulation (NAFR) released recently administrative rules on auto finance companies, effective from August 11, to strengthen sector regulation, reported Xinhua Finance on July 14.
The rules require capital providers of auto finance companies to be non-banking enterprises that are registered at home and broad in accordance with relevant laws and regulations and have separate legal personalities.
Among them, major capital providers of an auto finance company shall be producers of complete vehicles or non-banking financial institutions.
At least one of the capital providers of an auto finance company shall have more than five years of experience in auto consumption credit business management and risk control. Otherwise an auto finance company shall introduce a qualified professional management team, of which shall include at least one senior management staff who has rich auto finance business experience and one professional risk management staff as well.
As the rules provide, the minimum registered capital of an auto finance company is one billion yuan or its equivalents of other freely convertible currencies and the registered capital is required to be paid-in capital paid by one time. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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