It is my pleasure to welcome you to the 2nd Annual AFEC Conference taking place from December 5th to 6th in Beijing, China.

The PBC and the China Banking Regulatory Commission (CBRC) adopted a series of measures to guide the auto loan operations of both commercial banks and auto financing companies. With the development of the auto market economy and the national policy to support it, the auto finance market is surging. In 2014, auto finance penetration was 20% and jumped to 35% by 2016. By 2020, it is expected to reach 50%. According to a conservative estimate, the volume of the China automotive finance market will break the 2 trillion RMB threshold by 2020. While the market is healthy, China’s policymakers, regulators, commercial banks and other relevant firms are still facing challenges, including a paucity of data in the credit information system, financial institutions with varying risk management standards and, in recent years, the common occurrence of loan fraud, delinquencies and even defaults. The present situation is still a long way off from what the central government envisions. As such, we recognize the critical role that financial technology, risk management, credit market infrastructure and the regulatory system play in the industry lifecycle.