From Asiaport Daily News
SHANGHAI — The joint venture automotive financial company between General Motors Acceptance Corp. (GMAC) and SAIC Finance Co. has been formally approved by the China Banking Regulatory Commission.
The Shanghai-headquartered joint venture will see registered capital of approximately $60 million and will mainly provide joint ventures of the Shanghai Automotive Industry Group (SAIC), parent of SAIC Finance Co., and General Motors, with wholesale and retail credit services.
According to the regulations set by the China Banking Regulatory Commission, the joint venture can absorb deposits from Shanghai Automotive Group Finance Co., furnish credit to consumers, supply distributors with financing and loans from financial institutions and provide other services.
In the first half of 2004, it was difficult for consumers to get automotive consumer loans after the Chinese government created measures to rein in automotive consumer credits. The joint venture could bring about a pushing effect, but it would have to handle credit risks brought by China’s unsound credit environment.
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