Mortgage-backed products set to debut this year

Residential mortgage backed security products are set to debut on Chinese markets this year, but some commercial reasons may hinder the explosive growth of the product, industry experts said on Tuesday.

China Merchants Bank has already wrapped 8,920 of its mortgages amounting to 3.15 billion yuan ($500 million) into a security, and the same would be offered for sale in China's interbank markets on Friday.

It is the first RMBS product introduced in China after the regulator adopted a new registration system for credit asset securitization, meaning qualified issuers will only be required to register transactions before issuance, as opposed to the previous system where regulators approved transactions on a deal-by-deal basis.