Chongqing - The Forum for ILSTC Financial Service Consortium “Made-in-Chongqing Vehicles Going out into the Global Market” Trade, Financing, and Investment Cooperation took place on September 27. The primary objective is establishing a robust platform for information exchange regarding investment, financing, and trade within the associated sectors.

The Forum for ILSTC Financial Service Consortium “Made-in-Chongqing Vehicles Going out into the Global Market” Trade, Financing, and Investment Cooperation took place on September 27. (Photo/Chongqing Local Financial Supervision and Administration Bureau)

Financial support ecosystem for automobiles and motorcycles

The forum was strategically designed to cater to the investment, financial, and trade requirements for Chongqing-manufactured vehicles on a global scale, emphasizing the comprehensive support ecosystem for automobiles and motorcycles.

Hosted both virtually and in person, the forum also established online branches in Malaysia and Thailand. The event’s itinerary included company presentations, insights from business and banking sectors, and in-person discussions between financial entities, business groups, and various domestic and international corporations.

The consortium released ten specific financial service demands of Chongqing’s leading automobile firms, spanning areas such as foreign exchange collection, terminal consumer finance, and cross-border trade.

Twenty-eight automobile and motorcycle manufacturers and consulates of several RCEP member countries based in China, foreign entities in Chongqing, business groups, and financial institutions graced the event.

Earlier in April, during the 5th China-Singapore (Chongqing) Connectivity Financial Summit (CCI-FS), the ILSTC Financial Service Consortium came into being in Chongqing. This consortium now boasts 57 member institutions, creating a diverse institutional framework geared towards addressing business needs efficiently.

In-person discussions between financial entities, business groups, and various domestic and international corporations were held during the conference. (Photo/Chongqing Local Financial Supervision and Administration Bureau)

Foreign exchange services tailored to the automobile industry

Initial feedback has been promising, with 96 potential partnership intentions gathered. Among these, three Indonesian, nine Malaysian, and five Thai companies are willing to collaborate.

Wu Heng, Deputy Director of Chongqing Local Financial Supervision and Administration Bureau, remarked that the initiative has started bearing fruit. Several banks and financial institutions have shown an interest in offering local currency settlements and foreign exchange services tailored to the automobile industry’s international trade needs.

For instance, three Indonesian car dealerships are keen on partnering with consortium member banks to facilitate financing and leasing for vehicles made in Chongqing. Moreover, Malaysia’s Negeri Sembilan Industrial Park is courting major players like Changan and Seres for potential factory investment.

A recent report on the Asian automobile market highlighted Chongqing’s prominence as China's major automobile production hub, backed by a robust manufacturing ecosystem and supply chain.

Leveraging Chongqing’s competitive edge in the automobile sector and expanding its global vehicle exports are pivotal for the city’s sustained economic growth and social development.