Regulatory obstacles hamper China securitisation market
New rules aim to promote the market but banks still prefer the WMP route
Banks in China have been informally securitising products for four years into so-called wealth management products (WMPs) for distribution to private investors but new rules attempting to promote a more formalised securitisation market for institutional participation have yet to find favour with the industry.
China originally tested the feasibility of a domestic securitisation market in 2005 but three pilot schemes later just 23 transactions have been issued to date. Lengthy approvals processes
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