Ford test drives China's ABS via Bond Connect

The second-largest US carmaker expands its investor base by selling the first China asset-backed securities through the Bond Connect scheme.

US carmaker Ford is best known for selling Focus compact cars and Lincoln limousines. Now it's got something new to offer in China.

It has become first foreign issuer to sell asset-backed securities through the new bond trading link between Hong Kong and the mainland, raising Rmb3.46 billion $518 million from the sale last week.

The renminbi-denominated deal underscores the rapid acceleration of auto-loan securitisation in China, where foreign and domestic car manufacturers, including BMW China and Dengfeng Motor, sold $6.23 billion of the structured products in the first seven months, up 42% from the same period a year earlier, Wind data shows.

Bond...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222