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Asset securitization foundation 'not solid enough': Official

By Wang Xiaotian and Gao Yuan (chinadaily.com.cn)
Updated: 2011-03-08 16:53

The substructure for Chinese commercial banks' asset securitization is not solid enough, and the regulation agency is carefully examining this question, said Yan Qingmin, assistant chairman of the China Banking Regulatory Commission (CBRC).

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"Asset securitization depends on whether we have a mature policy structure and a qualified staff," said Yan, who is also a member of the Chinese People's Political Consultative Conference (CPPCC).

Some banks may evade the supervision of credit ceilings through asset securitization, Yan said. The high-quality credit assets do not have a big demand for securitization, he said, adding that a great deal of troubled assets would likely be brought into the securitization package.

The securitization must be factual, and refer to the true fixed yield curve, Yan said.