PBOC to support consumer finance companies, auto finance companies to issue financial bonds, asset-backed securities – state broadcaster

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The PBOC plans to support consumer finance companies and auto finance companies to issue financial bonds and asset-backed securities in enhance their financial service capabilities and expand the coverage of consumer credit, according to China’s state broadcaster CCTV.

The first batch of eight consumer finance companies and auto finance companies including BOC Consumer Finance, Zhaolian Consumer Finance, PSBC Consumer Finance and BYD Auto Finance have have preliminary communications with institutions including CICC, CITIC Securities, and China Merchants Securities, according to the report.

It is expected that the eight companies will issue about 50 billion yuan of financial bonds and asset-backed securities in the near term and more companies will be supported to issue such securities in the future, the report said.