Consumer Loan Firms Set Sail

In an effort to wean the economy from exports, China continues to introduce new measures in 2010 to stimulate consumer spending. On January 6, three consumer loan companies received licenses from the China Banking Regulatory Commission, breaking the ice in the consumer lending field.

Last year, the government subsidized consumers in their purchase of home appliances and vehicles. Most subsidies will be extended through 2010, with a Chinese version of the "cash for clunkers" program offering even higher rebates.  
Consumer loans have existed in western countries for over 400 years, but in China they are a brand new practice. There had been years of preparations for the initiative but it was unveiled with the worst the economic slump just behind, demonstrating the resolve of the government to further boost domestic consumption, analysts say.