China Limits Issuance in $63 Billion Mortgage-Backed Debt Market
- Central Bank reins in issuance to curb real estate prices
- PBOC began controlling issuance of RMBS in second quarter
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China is beginning to curb issuance of securities backed by residential mortgages, expanding efforts to rein in runaway property prices and household debt, people familiar with the matter said.
The central bank has since April started controlling the size and pace of RMBS issuance by lenders, according to the people, who requested not to be named because the matter is private. The People’s Bank of China is considering including such securities in its assessment of property-related loan exposure, they said.