Chinese RMBS needs more investors after ‘milestone’

By Tom Porter
21 Aug 2014

Moody’s has called the first Chinese RMBS since the financial crisis, printed by Postal Savings Bank of China last month, a milestone for the market but warned that disclosure levels must be maintained to draw the breadth of investor base necessary to make transactions economic for originators.

PSBC’s Rmb6.8bn (€832m) trade was the first since China Construction Bank’s in 2007, and came as the Chinese government seeks to arrest a troubling decline in property prices and help banks shift risk off their balance sheets.

In a report published this week, Moody’s said the deal ...

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