S&P: China’s Housing Provident Fund Using Securitization to Boost New Lending

According to a recent Standard & Poor’s (“S&P”) report, China’s Housing Provident Fund (“HPF”) is using securitization to support economic and financial initiatives. The HPF is a saving program that allows employees and employers to set aside a portion of wages to be used as deposits on home purchases. 

"Six HPF centers issued RMBS or home loan associated rights in 2015," said S&P's credit analyst Jerry Fang. "We expect more HPF-sponsored RMBS to come to market in 2016, thanks to the matched funding that securitization could provide and because authorities have encouraged municipal HPF centers to use securitization to alleviate funding pressure and increase their lending capacity.”

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