BIZCHINA / Center |
Banks, AMCs to sell US$7.6b ABS(Xinhua)Updated: 2006-11-13 16:39 China is planning to allow State-owned banks to issue a second batch of asset-backed securities (ABS) worth about 60 billion yuan (US$7.64 billion) within this year, the China Securities Journal reported over the weekend. The State Council has "in principle" agreed with the ABS schemes submitted by the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC), Bank of China (BOC), and China Merchants Bank. ICBC, ABC and BOC will each issue more than 10 billion yuan of ABS, and Merchants Bank will sell about 6 billion yuan worth. Two asset management companies (AMCs), China Orient and Cinda, will also issue ABS. The preliminary size of the ABS products will total 60 billion yuan, with the underlining assets covering assets in bank card, consumer credit and non-performing loans. At the end of last year, China launched its first ABS products by China
Development Bank and first mortgage-backed securities issued by China
Construction Bank. (For more biz stories, please visit Industry Updates)
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