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Author Topic: China regulates the hire purchase business. Hope to reduce financial risk.  (Read 887 times)

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China regulates the hire purchase business. Hope to reduce financial risk.

The China National Banking and Insurance Regulatory Commission (CBIRC) announced on its website that the CBIRC has issued regulations to tighten the supervision of the hire purchase business, which has a total asset value of more than 4 trillion yuan (5.7716 billion dollars), which The latest attempt to control financial risks

CBIRC revealed that China has 10,900 hire-purchase companies at the end of June. But 72% are companies that are concealing without actually doing business (shell companies) or have ceased doing business

This new regulation Require the hire purchase company to reduce the holding of risky assets And do not lend too much to a single customer

CBIRC states that some companies in this fast growing hire purchase business Has deviated from the main business of lending And providing leasing services to various companies

CBIRC states that hire-purchase businesses need to have a prudent and continuous regulatory system. To suggest those companies to return to focus on their core business And state that There is a 2 year grace period for clearing up the said industry.



 

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