New doors opening for consumer finance firms

The consumer finance sector is to be opened to non-financial enterprises as a move to draw more private capital into the industry, according to the China Banking Regulatory Commission.

Non-financial enterprises with at least 30 billion yuan ($4.9 billion) in annual operating income can set up a consumer finance company and act as the main sponsor, the CBRC said in a draft released for comment on Thursday night.

The threshold for operating income is far below the former level of 80 billion yuan.