(Yicai Global) Dec. 27 -- China's central bank aims to impose a cap on the size of car loans in relation to the value of vehicles to further regulate the auto finance sector.
The People's Bank of China published for public comment on its website today its decision to amend the Administrative Measures for Auto Loans. The bank and the China Banking Regulatory Commission would set the proposed limit.
The price of a new car refers to the purchase cost or price as published by the automaker, whichever is lower, excluding government subsidies, taxes and insurance costs. For used cars, it would be the transaction price or price as appraised by the lender, whichever is lower, excluding subsidies, taxes and insurance fees.