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BYD, Société Générale Group to build auto financing firm
Shanghai, June 22 (Gasgoo.com) Chinese automaker BYD Co. (01211.HK) announced yesterday that it has signed a contract with Compagnie Generale de Location D'equipements (CGL), an affiliate of Société Générale Group to build an auto financing company in Shenzhen, China.
The registered capital of the new joint venture is 500 million yuan ($73.5 million), of which BYD Co. will provide 400 million yuan and the rest will be contributed by Compagnie Generale de Location D'equipements, BYD said in a statement.
The new auto financing company will extend loans for auto purchase, and provide the foreign shareholders and their Group's fully-owned subsidiaries in China as well as the domestic shareholders with fixed deposit which allows them to deposit the money for three months.
The new company will also accept auto loans and loan guarantees of the auto dealers, the financial bonds, the relevant receivables and the loans for purchasing operating equipments.
Moreover, BYD said it will need to obtain China Banking Regulatory Commission's permission to build this auto financing company in Shenzhen.
BYD shares closed at 63.20HKD as of June 21, 2010, up 5.25%.
The registered capital of the new joint venture is 500 million yuan ($73.5 million), of which BYD Co. will provide 400 million yuan and the rest will be contributed by Compagnie Generale de Location D'equipements, BYD said in a statement.
The new auto financing company will extend loans for auto purchase, and provide the foreign shareholders and their Group's fully-owned subsidiaries in China as well as the domestic shareholders with fixed deposit which allows them to deposit the money for three months.
The new company will also accept auto loans and loan guarantees of the auto dealers, the financial bonds, the relevant receivables and the loans for purchasing operating equipments.
Moreover, BYD said it will need to obtain China Banking Regulatory Commission's permission to build this auto financing company in Shenzhen.
BYD shares closed at 63.20HKD as of June 21, 2010, up 5.25%.
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