China urges banks to offer auto credit service

Shanghai, April 3 (Gasgoo.com) Eight ministries of the Chinese government have issued a joint document, urging banks to offer auto credit services for the sales of new vehicles and second-hand ones, xinhuanet.com reported today.

The official document said that China is working out industry guidelines on offering auto credit services and collecting personal credit information. Financial institutions are encouraged to specify differential credit requirements and use the guarantee mode to meet the needs of auto dealers for loans.

In addition, the government will revise the measures of managing auto brand sales. It will build a reasonable layout of the auto dealing sector, and support qualified auto dealers to develop independent service brands through cross-region merger, acquisition and restructuring and chain operation.

The ministries also urged implementation of earlier policies including adjustment of auto sales tax and purchase tax cuts for sub-1.6L passenger cars.

The eight ministries are the Ministry of Commerce, Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Finance, State Administration of Taxation, State Administration for Industry and Commerce, China Banking Regulatory Commission, and China Insurance Regulatory Commission.