Securitization in China: issues and progress

Freshfield''s partner Melissa Thomas and PRC legal consultant Ruoying Chen discuss the development of securitization as a financing tool in China.

As the reform and opening of China's financial sector continues, China's bankers and their regulators have become keenly interested in the potential of securitisation as a tool to help achieve their objectives of capital relief, risk transfer and balance sheet optimisation for commercial banks.

The four large state-owned commercial banks are under increased pressure to deal with their massive portfolios of non-performing loans NPLs. The same pressure is weighing heavily on the four asset management companies AMCs, which received a substantial infusion of pre-1996 NPLs from the banks in 2000 and have only six years left to dispose of the bulk of these aging assets. The banks have...

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