Tough road ahead for consumer finance firms

Consumer finance firms still have a long way to go before they catch up with banks, though they still remain an integral part of the financing chain, said experts.

The China Banking Regulatory Commission yesterday unveiled the final rules for setting up consumer finance firms in Beijing, Shanghai, Tianjin and Chengdu on a trial basis as part of its efforts to step up domestic spending.

Savings is still the most preferred option for parking money in China. By setting up consumer finance firms, the regulator intends to provide funding avenues for purchase of home appliances, electronic products and for other purposes like house decoration, travel and education.