Motor Vehicles and Parts News
- 1st car loan-backed securities OKed
Date: 28-Nov-2007 Sources: (Shenzhen Daily)
SINO-U.S. car finance company GMAC-SAIC Automotive Finance Co. and a Chinese trust firm had won approval to launch China's first securities products backed by auto loans, the country's banking regulator said yesterday.
This was part of China's efforts to develop its fledgling asset-backed securities (ABS) market and encourage financial innovations, the Shanghai branch of the China Banking Regulatory Commission said in a statement.
The ABS market, which was launched in 2005, could reach 100 billion yuan (US$13.54 billion) by the end of this year, analysts have said.
GMAC-SAIC would launch the ABS backed by car loans jointly with Fortune Trust & Investment Co., the statement said, without giving details.
Most Chinese and international automakers, including General Motors and Ford Motor, have set up car financing arms to spur sales in China, the world's second-largest auto market.
GMAC-SAIC is a three-way tie-up between GMAC, Shanghai Automotive Group Finance Co. and Shanghai GM -- General Motors' manufacturing venture with China's SAIC Motor Corp.
Outstanding loans at GMAC-SAIC, set up in August 2004, had topped 10 billion yuan as of the end of October this year, according to the banking regulator's statement.
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