Growth of China Asset Securitization Industry 2017 Forecasts
Asset securitization is a financial innovation aimed to improve liquidity and raise funds. It is a technology and process of structuring illiquid assets that can produce predictable and stable cash flows, reallocating risks and benefits, providing corresponding credit guarantees, and ultimately issuing securities to raise funds with the illiquid assets as underlying assets. In a narrow sense, asset securitization generally refers to securitization of credit assets, including mortgage-backed asset securitization (MBS) and asset-backed securitization (ABS). The asset securitization discussed in this CRI report mainly means securitization of credit assets.
China credit assets securitization pilot began in 2005. Regulatory agencies first issued Administration of Pilot Projects for Credit Assets Securitization Procedures and Measures for the Pilot Supervision and Administration of the Credit Assets Securitization of Financial Institutions, followed by credit assets securitization and mortgage securitization carried out by China Development Bank and China Construction Bank with an issuing scale of CNY 7.196 billion. The issuing scale in 2006 was CNY 11.58 billion. In 2007, with the introduction of relevant regulations on information disclosure of credit assets securitization and interbank market collateral repo transactions of asset-backed securities, credit assets securitization entered the pilot expansion phase, with continuously increasing scale, extending to non-performing assets. The issuing scale in 2007 was CNY 17.808 billion and that in 2008 was CNY 30.201 billion, including the first non-performing asset securitization product issued by China Construction Bank, which further enriched the categories of asset securitization.
At the end of 2008, a total of 11 promoters conducted 16 pilot business operations of credit securitization, with a total issuing scale of CNY 66.785 billion. Whether in quantity or scale, credit securitization enjoyed a small proportion
China credit assets securitization pilot began in 2005. Regulatory agencies first issued Administration of Pilot Projects for Credit Assets Securitization Procedures and Measures for the Pilot Supervision and Administration of the Credit Assets Securitization of Financial Institutions, followed by credit assets securitization and mortgage securitization carried out by China Development Bank and China Construction Bank with an issuing scale of CNY 7.196 billion. The issuing scale in 2006 was CNY 11.58 billion. In 2007, with the introduction of relevant regulations on information disclosure of credit assets securitization and interbank market collateral repo transactions of asset-backed securities, credit assets securitization entered the pilot expansion phase, with continuously increasing scale, extending to non-performing assets. The issuing scale in 2007 was CNY 17.808 billion and that in 2008 was CNY 30.201 billion, including the first non-performing asset securitization product issued by China Construction Bank, which further enriched the categories of asset securitization.
At the end of 2008, a total of 11 promoters conducted 16 pilot business operations of credit securitization, with a total issuing scale of CNY 66.785 billion. Whether in quantity or scale, credit securitization enjoyed a small proportion