China has unveiled rules governing car loans to curb the growing risks in the car industry.

Auto makers hope the new car financing rules will fuel the next stage of explosive growth in the car industry.

Car sales in China have slowed recently, hit by a clampdown on easy credit.

General Motors and rival Volkswagen AG this month became the first foreign firms to be granted approval to operate auto-financing companies in China.

Rivals Toyota and Ford are waiting in the wings.

(CRI August 18, 2004)