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Chinese regulators consider relaxing auto finance rules

Chinese regulators are considering relaxing auto finance regulations, including lifting the 80% cap on the amount of a car that a consumer can borrow from a lender, The Wall Street Journal reported Dec. 27, citing the Chinese central bank.

The People's Bank of China and the China Banking Regulatory Commission plan to revise current regulations, which allow consumers to borrow up to 80% of a new car's price. The central bank added that it will seek comments about the revision in January 2017.

Earlier, Reuters reported that the central bank is proposing tighter guidelines for car loans amid concerns of possible defaults.