Pursuits
Shanghai to Sell $1.1 Billion Bonds Backed by Public Home Loans
- The product is the first such ABS on interbank market
- The move can boost home sales and ease property inventory
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Shanghai plans to sell 6.96 billion yuan ($1.09 billion) of bonds backed by local government-managed funds that provide mortgages as China seeks to boost home sales and clear a nationwide property oversupply.
Shanghai Provident Fund Management Center plans to issue the securities on Dec. 4, according to statements on the Shanghai Clearing House website on Friday. The notes are the first asset-backed securities backed by housing fund loans to be offered in China’s interbank market, according to Zhou Yue, a Shanghai-based bond analyst at China Merchants Securities Co.