Lenders given nod to start ABS sales

The government has permitted 27 lenders to sell asset-backed securities through a streamlined registration system, financial market sources said on Thursday citing an official document issued by the China Banking Regulatory Commission earlier this month.

The 27 institutions, which are major joint-equity commercial banks and city commercial banks such as Industrial Bank Co Ltd and Ping An Bank Co, need only to register with the regulator to issue ABS products fromnowon. Previously, they had to apply to the regulators for a review and approval before they could issue asset-backed securities.

Niu Nan, general manager of the structured finance department of China Cheng Xin International Credit Rating Co Ltd, said other financial institutions including State-owned banks, foreign banks, auto finance companies and financial leasing companies are supervised by different departments of the CBRC and are expected to win similar approvals soon.