China's securitisation market revs up

Real demand has become the major force driving the market, which has been concentrated on collateralised bank loans and asset-backed securities backed by car loans.
Global automakers are setting up auto ABS platforms in China, the world's largest auto market
Global automakers are setting up auto ABS platforms in China, the world's largest auto market

China’s securitisation market is set for explosive growth in the coming years as demand from issuers and investors increases sharply.

The market will grow at an annual rate of 40% to Rmb2 trillion $319 billion in five years time, the China International Capital Corporation estimated in February.

The boom began in 2014, when the total issuance of Chinese securitisation products grew 10-fold to Rmb326.4 compared with the previous year, according to domestic data provider Wind Info.

New products are set to enter the market, which has been mainly concentrated in collateralised bank loans and asset-backed securities backed by car loans.

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