Building a future for Chinese securitisation

China's capital markets are hardly at the cutting edge of global developments: stifling state control and regulation have so far hindered the emergence of a securitisation market. But that may be set to change after landmark issues from two banks. Nadia Damouni reports

Until recently the development of China's bond and securitisation markets was sluggish at best. An absence of standardised tax rules, inefficiencies in the legal system and a history of state-directed credit where the government has prioritised lending schemes for state banks and state-owned enterprises all combined to make issuers reluctant to look outside of the bank loan markets.

But new regulations published by the China Banking Regulatory Commission (CBRC) in November last year