China Legal Briefing - January 23, 2004

Summary : National and local news briefs regarding the Draft Regulation on Auto Loans, Covert Financing(SAFE), Usage of China Unionpay Card May in HK, the Shanghai Regulation on Tourism and the Shenzhen Circular on Deeds.

On the 21st of January 2004, the People’s Bank of China published its draft Regulation on Administration of Auto Loans for consultation, which set out respective rules for auto loans granted to different kinds of debtors as well as for risk management.

The term "auto loans" in this regulation refers to loans issued for the purpose of purchase and sale of autos. Individuals, auto-dealers and other legal per-sons may obtain auto loans. Each scenario is addressed by a separate part of the regulation.