Chinese ABS looks to stock exchange to broaden investor base

China money resized 230px
By Tom Porter
16 Jun 2014

Ping An Bank is set to issue the first asset backed security to be traded on the Shanghai Stock Exchange, as China’s nascent securitization market looks to pull in new investors to help move risk away from the banking system.

Chinese authorities have embraced securitization as a tool for reducing the concentration of risks within the country's powerful banking sector, and has encouraged issuance through its pilot Credit Asset Securitization (CAS) programme, which was reopened in 2012.

The technique has shown signs of taking hold in the automobile ...

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