The development of China’s securitisation market hinges on the strength of the country’s legal framework and the risk of default of underlying assets, according to Moody’s
Officially established in 2005, Beijing stopped the securitisation market in 2009 due to the global financial crisis, resumed it in 2012 and has gradually expanded it since then
“Chinese authorities reckon securitisation is a good tool to diversify financing channels for SMEs, agricultural sectors, and urban development projects,” Moody’s senior-vice president Jerome Cheng told FinanceAsia “They have been promoting the healthy development of securitisation,” said Cheng
And the market has been booming this year As of July 20, issuance doubled to Rmb200 billion ($33 billion) from last year’s total...
