(Yicai Global) Dec. 30 -- China’s top banking and insurance watchdog has proposed the first revision of the nation’s auto finance regulations in 15 years to encourage industry players to strengthen development of their main business and help support car buying.

The China Banking and Insurance Regulatory Commission plans to remove equity investment from the business scope of auto finance companies and add funding for car accessories so that buyers can get loans for those as well as vehicles, according to the draft revisions posted on its website yesterday. The public can give feedback on the proposed changes until Jan. 29.

The CBIRC also intends to allow auto finance companies to provide vehicle after-sales service providers with loans to buy maintenance equipment and take part in financial leasing through sale and leaseback.

China has not revised its auto finance rules since January 2008, when it did so for the first time. The business environment has changed a lot since then, as the sector has expanded to cover a full life cycle that includes after-sales services and car usage not just sales, a CBIRC official said, so regulatory change is needed.

The draft revisions would also allow auto finance firms to set up overseas units to provide financial services to Chinese carmakers that have expanded abroad in recent years, and would tighten the requirements on shareholder investment, corporate governance, and internal control and risk management at lenders.

Editors: Dou Shicong, Futura Costaglione