7.24Citic, BBVA to open car loan joint venture in China

Citic, BBVA to open car loan joint venture in China

 

http://autonews.gasgoo.com/auto-news/1011446/Citic-BBVA-to-open-car-loan-joi
nt-venture-in-China.html

 

Shanghai, July 24 (Gasgoo.com) Chinese banking group China Citic Bank Corp
Ltd. and its Spainish partner Banco Bilbao Vizcaya Argentaria SA (BBVA) will
set up a joint venture to develop car loan business in China, the Chinese
bank announced yesterday in Beijing, local media reported.

 

The Beijing branch of Citic's auto financing center was launched yesterday.
Consumers to buy cars via Citic will be able to get at least 20% down
payment on the car to pay off within five years with 10% off the interest
rate. Citic said it will open auto loan branches in its 600 branches
nationwide in preparation of the auto loan joint venture with BBVA. 

 

BBVA said it will hold a 35% stake in the auto loan joint venture business,
which will include an initial investment of 500 million yuan ($73.2
million). The two partners aim to reach a 5% share of the China's auto
financing market within a five year period. 

 

China's auto market is growing at an annual rate of more than 10%, with 6.1
million cars sold in the first half this year. Meanwhile, the number of
wealthy individuals in the country is estimated to grow at an annual rate of
7% this year.

 

Currently, there are some 30,000 auto dealers in China, of which 2,000
already have a direct relationship with Citic. Last year, Citic loaned 100
billion yuan to 35 auto dealers.

 

BBVA, Spain's second-largest bank by assets behind Banco Santander SA, owns
a 10.07% stake in China Citic Bank. Their auto loan joint venture is
awaiting China's regulatory approval.

 

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