Securitization in China: Recent Developments

April 02, 2012
China has announced plans to launch a new pilot securitization program that will allow some Chinese commercial lenders to securitize financial assets. Eligible assets are likely to include, among others, loans to local Chinese government financing vehicles, which would address what has been an area of significant concern. This update briefly summarizes the latest developments involving this program, which could help Chinese banks transform illiquid assets into liquid assets.