Shanghai-based Chenengdai, an internet P2P automobile loan platform, has been issued a license from the Shanghai government, according to company website, allowing it to extend further into the lending industry. The company allows users to upload their car details to a platform where independent borrowers can then chose to ‘mortgage’ the car, while Chenengdai takes a 5% cut.

The announcement follows Didi Kuaidi’s announcement that it has snagged the first license to run ‘legal’ private cars in Shanghai. U.S. rival Uber announced the official registration of their China subsidiary in Shanghai’s Free Trade zone in the same week, hoping to get the same license soon.

In 2004, automobile loans in China surged to 85 billion RMB ($1 billion USD) as Chinese people embraced mortgage loans. When the economy began to slow, the Chinese government lowered the service charges for automobile mortgage registration in 2013 to revive the economy. With more than 70 million private cars registered in China, the automobile mortgage loan market is reviving.

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Eva Yoo

Eva Yoo is Shanghai-based tech writer. Reach her at evayoo@technode.com