China Eases Rules for Selling Loans as Asset-Backed Securities
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China relaxed rules for the sale of asset-backed securities, making it easier for banks to transform some of the country’s 85 trillion yuan ($14 trillion) yuan of outstanding loans into tradable notes.
Institutions no longer need to seek approval from regulators for each ABS sale, the People’s Bank of China said today on its website. Those licensed by the China Banking Regulatory Commission to sell ABS will be able to determine the timing and location of the issuances after registering the amount of planned sales and their maturities with the CBRC, according to the new rules.