HKMB Hong Kong Means Business

Hong Kong Means Business Hong Kong Means Business
  • Login / Register

Languages

  • EN
  • 繁
  • 简
  • Events
  • My Feed
  • Contact HKTDC
  • Subscribe
  • Subscribe

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

Languages

  • EN
  • 繁
  • 简
  • HKTDC.com |
  • About HKTDC |
  • My HKTDC |
  • Login / Register |

HKTDC.com About HKTDC My HKTDC

Login Register

Hong Kong Means Business

Section Menu

  • multimedia
  • market spotlight
  • first person
  • Venture Hong Kong
  • heads-up
  • inside china
  • life & style
  • hktdc research

https://hkmb.hktdc.com/en/1X0A2TTS

hktdc research
SAVE FOR LATER
SHARE / SEND

"Scan QR Code" in WeChat and tap "..." to share.

China Expands Pilot Scheme for Consumer Finance Companies Nationwide

02 July 2015

The State Council decided at a recent executive meeting to liberalise the consumer finance industry by expanding the pilot scheme for consumer finance companies from 16 cities to all parts of the country. The administrative power to approve consumer finance companies will be delegated to the provincial governments. Qualified private capital, domestic and foreign banking institutions and Internet+ companies are encouraged to set up consumer finance companies and offer small unsecured loans without collateral in well-regulated operations at their own risks. They will compete with commercial banks on a different level and work together to make consumption play a better role in stimulating economic growth.

Consumer finance companies have seen rapid growth and reached maturity in the West, but are still on the threshold in China. There is ample room for development. The business of consumer finance companies mainly includes loans for personal durable consumer goods and personal consumption loans for general purposes. From the angle of sales revenue and main business, retailing and home appliance heavyweights will stand to benefit from this policy.

With the approval of the State Council, the China Banking Regulatory Commission (CBRC) released the Administrative Measures on the Pilot Programme of Consumer Finance Companies in 2009. Beijing, Tianjin, Shanghai and Chengdu were each allowed to set up one pilot consumer finance company. In September 2013, the CBRC expanded the pilot scheme to Shenyang, Nanjing and other cities.

Consumer credit is expected to increase at a compound growth rate of over 20% from 2014 to over Rmb27 trillion by 2017. Up to 2014, outstanding personal consumer loans in China stood at about Rmb7.7 trillion. The figure is expected to increase to Rmb17.5 trillion by 2018.

Under China's economic transformation and “new normal”, consumption will be the main engine for future economic growth. With its huge population and strong spending power, there is great potential to be tapped in this connection. The government's policies of economic stimulus and support have also provided a good environment for the development of consumer finance, which will be the next blue ocean for Internet finance.

The recent State Council executive meeting also pointed out that promoting the healthy and rapid development of cross-border e-commerce and using the "Internet plus foreign trade" approach to improve the import and export mix will help expand consumption, promote the development and upgrade of China's open economy, and foster new growth areas.

The rapid development of cross-border e-commerce in the next few years will generate great opportunities for companies engaged in the building and operation of e-commerce platforms. Cross-border e-commerce will keep growing at a compound rate of 30% annually over the next two to three years and will account for about 20% of the total value of imports and exports by 2017. Export e-commerce will remain dominant, accounting for over 80%. The value of export e-commerce will continue its growth at 20%-25% annually to reach Rmb6.64 trillion by 2017.

BACK TO TOP ^
CONTENT PROVIDED BY
    Topics:
  • Mainland China,
  • small loans,
  • private capital,
  • pilot scheme for consumer finance companies
  • Mainland China
  • Mainland China
Home

Article Topics

ARTICLE TOPICS

MAINLAND CHINA35608
SMALL LOANS107223
PRIVATE CAPITAL72490
PILOT SCHEME FOR...107224

ARTICLE TOPICS

MAINLAND CHINA35608
SMALL LOANS107223
PRIVATE CAPITAL72490
PILOT SCHEME FOR CONSUMER FINANCE COMPANIES107224

interest_article

YOU MAY BE INTERESTED IN

29 June 2022

Eyeing GBA opportunities

17 June 2022

Operational Guidance for the New US Forced Labour Prevention Act

15 June 2022

22 Sectors Allowed to Defer Social Insurance Premium Payments

15 June 2022

China Announces 56-Point Guideline on Preferential Tax Policies for Green Development

Related Events

RELATED EVENTS

26 - 30 July 2022

Style Hong Kong Pavilion at China International Consumer Products Expo, Haikou

2 - 4 September 2022

Chic HK, Shenzhen

7 - 10 December 2022

Marintec China 2022 – HK Pavilion

7 - 9 December 2022

SIAL Shanghai 2022
FIND AN EVENT

Social Share

FOLLOW US

GET WEEKLY UPDATES

newpaper-img

GET OUR WEEKLY EMAIL UPDATES

banner-img


I acknowledge that the above information may be used by the Hong Kong Trade Development Council (HKTDC) for incorporation in all or any of its database for direct marketing or business matching purpose (and may therefore become available to the public within and/or outside of Hong Kong for use by them), and for any other purposes as stated in the Privacy Policy Statement; I confirm that I have the consent and the authority of each individual named in this form to release their personal data for the purposes stated herein.


*For non-EU/EEA customers, please skip this box which is solely for EU/EEA customers as required by the relevant data protection law in the EU.

THANK YOU

Thank you for registering.

SHARE THIS STORY

EMAIL
LINKEDIN
WeChat
FACEBOOK
TWITTER
WHATSAPP

ID: HKTDCofficial

Don't have an account?

Create An Account

successfully added on your preferences.