Wendy Zhang/ Shanghai Daily news

The Industrial and Commercial Bank of China (ICBC)'s Shanghai branch announced yesterday a zero-rate mortgage plan for car buyers, the Youth Post reported today.
ICBC's local branch, claiming one-third of the city's individual car loans, and Shanghai Huizhong Automotive Manufacturing Company, a subsidiary of Shanghai Volkswagen, jointly offered a car sales program for buyers spending 80,000 yuan (US$9,600) in initial payments with zero interest rates.
The Shanghai Huizhong Automotive Manufacturing Company will pay the interest rates for consumers and after two years, it will buy back the cars from the bank in order to exempt consumers from paying mortgage rates in the future.
Currently, ICBC's Shanghai branch is busy negotiating with other car manufacturers to introduce this preferential policy.
With car manufacturers and dealers facing the pressure of growing inventories, banks must adjust their credit structures to seek new profit growth engines, said Chen Minzhong, an industry analyst.
With strict risk controls, it is the right time for banks to enter into the car market by cooperating with car makers and dealers, Chen pointed out.