Non-Financial Issuers Key to Expansion of China Securitization Market

China’s securitization market is expected to expand in 2016 with non-financial institution issuers taking the lead, according to Fitch Ratings executives who spoke with China Daily. In a recent article, Senior Director of Fitch Ratings’ Structured Finance Tracy Wan, stated that the slowdown of China’s economy could have an impact on corporate borrowing, but non- financial institution issuers do not have that problem. Last year, non-financial issuers sold 180 billion yuan ($16.7 billion) of ABS, a five-fold increase within one year.

Wan explained that it will be crucial for China to educate investors about the products in order to develop the market. "Hopefully the increasing example of defaults in bond market would alert them on individual risk," Wan said.

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