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China's fledgling securitisation market showing signs of risk

Analysts point to over-optimistic cash flow projections, disclosure problems

The big worry is that some underwriters and rating agencies could collude with issuers to package shoddy assets into hard-to-understand bundles of products and sell them to an unsuspecting public.


AS CHINA struggles to wean its economy off excessive debt, its fledgling securitisation market has exploded with cash-starved banks, local governments and private firms rushing to convert assets into cash.

China's market in asset-backed securities (ABS), a financing...

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