On June 10, Tianjin Great Wall Binyin Automobile Finance Co., Ltd. obtained its business license after passing the examination by the Administration for Industry and Commerce, Tianjin Binhai Area. The company will go into operation soon. According to sources, as China's first private automobile finance company as well as Tianjin's first automobile finance company, the company primarily provides auto loan services to consumers and inventory financing services to automobile distributors through bank loans and shareholder deposit financing.

Located at Tianjin Binhai Economic-Technological Development Area, Tianjin Great Wall Binyin Automobile Finance Co., Ltd. was jointly founded by Great Wall Motors Co., Ltd. (GWM) and Tianjin Binhai Rural Commercial Bank (TJBHB), with a registered capital of 550 million yuan including 495 million yuan (90%) from the former and 55 million yuan (10%) from the latter. The company will preferentially serve GWM's distribution industry chain and gradually permeate into the auto finance markets of other auto brands.

Sources said the company will, after its establishment, practice credit modes such as average capital, average capital plus interest, and wage-guaranteed loans; it will also tailor auto financing schemes and flexible inventory-financing products to consumers through a one-stop financial service, at transparent and reasonable prices. Also, the company will provide strong and stable financial support to boost distributors' sales and promote the continuous increase in distributor numbers.

Authorities deem that the Chinese auto finance market has huge potential and development space compared to the overseas auto finance market. Auto finance will become an effective way for automakers to vie for market share against opponents and seek new economic growth points.