China mulling over bad-debt securitisation to cut bad loans
Only 3 Chinese firms have issued such bonds before a 2009 halt to all asset-backed securities
Hong Kong
CHINA is facing calls to bring back an instrument to fight bad loans it had deemed too dangerous after the global financial crisis: debt tied to failed assets.
China Construction Bank Corp (CCB) said in August it's exploring bad-debt securitisation, in which lenders package soured loans into notes sold to investors. While a central bank official said in May such products are under study, regulators this month declined to comment on the plans. Only three Chinese firms have issued such bonds before a 2009 halt to all asset-backed securities that ended in 2012 with products tied only to performing assets.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Canada Is exploring higher tariffs on Chinese EVs: Trade Minister
Nancy Pelosi’s husband’s attacker jailed for 30 years
US, TikTok seek fast-track schedule, ruling by Dec 6 on potential ban
Higher US food prices lead to a shift in shopping habits
Indian spice trade group fears plunge in exports due to ETO pesticide scrutiny
Abu Dhabi’s US$302 billion fund deepens AI and private credit push