China's First Automotive, Ag Bank of China In Financing Pact -To Help China's Consumers To Own Cars

Monday August 26, BEIJING - Dow Jones reported that Agricultural Bank of China has signed an automobile financing agreement with the marketing unit of China's First Auto Works Group, state media reported Monday.

Under the agreement, Agricultural Bank of China will provide auto financing services for purchasers of First Auto products, official Xinhua News Agency reported.

The agreement will promote speed and security of automobile financing arrangements for First Auto, as well as boost Agricultural Bank of China's client base, the report said.

First Auto Works Group is China's largest automaker and has had automobile financing and financial cooperation agreements with China Construction Bank beginning in 1998.

A price war among domestic car manufacturers and a growing interest in car ownership among China's urban consumers have already caused a surge in consumer car loans in the past year.

Industrial & Commercial Bank of China, China's largest state-owned commercial bank, has said it expects its consumer car loans to increase 63% to 15 billion yuan ($1=CNY8.28) in 2002.