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.
The Shanghai Stock Exchange
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, and to agree changes after an agreement takes effect.

Currently, all such deals are matched through the exchange’s open and centralised price bidding system and there is little room for the participants...
¬ 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