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CHINA: Geely plans consumer finance JV with BNP

By Dave Leggett | 17 December 2013

Geely has said it plans to set up a joint venture with BNP Paribas Personal Finance to conduct auto financing in China.

BNP Paribas Personal Finance is a wholly owned subsidiary of France's BNP Paribas Group.

Geeely said the joint venture will have a registered capital of 900 million yuan (around $148 million), of which Geely will invest 720 million yuan giving it 80% of the company.

BNP Paribas Personal Finance will provide 180 million yuan for the remaining stake, a statement added.

"China's automotive market continues to grow at a rapid pace and customers are increasingly looking for new, innovative ways to finance their auto purchases," said Daniel Li, vice president and chief financial officer of Zhejiang Geely Holding Group and executive director of Geely Automobile.

The agreement is subject to approval by Chinese authorities.