Rules issued for asset-backed notes
Source: Bloomberg News |
August 7, 2012, Tuesday
|
Print Edition
Print Edition
CHINA issued guidelines for sales of asset-backed notes in its interbank market, the National Association of Financial Market Institutional Investors said.
Companies can choose to sell the notes publicly or via private placements direct to investors, NAFMII said in a statement on its website yesterday. The funds raised should be used in accordance with the law and the demands of the country's policies, according to the statement.
Banks were permitted to begin selling asset-backed securities again after the regulator suspended an issuance program in 2008 in the wake of the financial crisis, Moody's Investors Service said in a report on June 11.
China Development Bank Corp and China Construction Bank Corp sold 7.2 billion yuan (US$1.13 billion) of asset-backed bonds in December 2005, the first such deal for financial institutions in the country.
Financial institutions sold 17.8 billion yuan of asset-backed bonds in 2007, according to Chinabond, a website run by the nation's biggest debt clearing house.
For publicly issued asset-backed securities, at least two ratings companies must be hired to produce credit ratings on the borrower.
Companies can choose to sell the notes publicly or via private placements direct to investors, NAFMII said in a statement on its website yesterday. The funds raised should be used in accordance with the law and the demands of the country's policies, according to the statement.
Banks were permitted to begin selling asset-backed securities again after the regulator suspended an issuance program in 2008 in the wake of the financial crisis, Moody's Investors Service said in a report on June 11.
China Development Bank Corp and China Construction Bank Corp sold 7.2 billion yuan (US$1.13 billion) of asset-backed bonds in December 2005, the first such deal for financial institutions in the country.
Financial institutions sold 17.8 billion yuan of asset-backed bonds in 2007, according to Chinabond, a website run by the nation's biggest debt clearing house.
For publicly issued asset-backed securities, at least two ratings companies must be hired to produce credit ratings on the borrower.
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