NPL ABS to get off-balance sheet treatment

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By Rev Hui
14 Apr 2016

The securitization of non-performing loans by Chinese banks is gaining plenty of traction as they are set to achieve off-balance sheet accounting treatment — one of the major hurdles for the development of the asset class.

NPL securitizations are not new to China, as the country has recorded four such deals between China Orient Asset Management, China Construction Bank and China Cinda Asset Management from 2006-2008.

But that was as far as it got before the global financial crisis led to China's regulators putting ...

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