Guangdong opens door to HK consumer finance companies

Hong Kong financial institutions will be allowed to establish consumer finance companies in Guangdong province through a pilot program in the Pearl River Delta, the central government said, according to a Xinhua News Agency statement on Wednesday.

The plan will also promote coordination among airports, harbors and train systems in the Pearl River Delta, including Hong Kong.

"Allowing Hong Kong financial institutions to establish consumer finance companies in Guangdong may provide business opportunities for local financial institutions to tap the huge mainland consumer finance market, as local players have a competitive edge in using proficient marketing techniques," said Terence Chong, executive director of the Institute of Global Economics and Finance.