Shanghai exchange repo rules to boost China ABS

The stock exchange loosens limitations in pledge-style bond repurchases and leaves more flexibility for investors and bondholders.

Shanghai exchange repo rules to boost China ABS
The Shanghai Stock Exchange

The new debt repurchase or repo business launched last week by the Shanghai Stock Exchange should help in the development of China’s asset-backed securities market by widening the range of collateral that can be used to include ABS.

The Shanghai Stock Exchange's revamped repo market, which previously only accepted some corporate debt and national bonds as collateral, also gives market participants the power to finalise their own transaction terms, including duration, yield, and discount,...

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