BEIJING, March 27 (Xinhua) – China's outstanding asset-backed securities products stood at 2.7 trillion yuan by the end of 2018, making the country the biggest ABS market in Asia and the second largest one worldwide next to the U.S., reported China Securities Journal citing a report from Moody's.
Last year, ABS provided a larger proportion of debt financing for China's economy, which, in large part, benefited from the increasing structural financing with consumption loan such as personal housing mortgage and automobile loan as basic assets.
The newspaper cited Zhou Jie, senior analyst of Moody's as saying that ABS products took up 4.6 percent of new offerings on China's debt market in 2018, higher than the 3.7 percent for 2017.
For different ABS products, their issues differ in amount and proportion of contribution to overall debt financing in China. Last year, individual home mortgage-backed securities and automobile loans-backed securities offerings edged up year on year while securities usually backed by credit card receivables and microcredit ABS issues dwindled together with a decline in collateralized loan obligations (CLO) offerings.
As the Moody's report tells, China's ABS market changes upon the changes in financing demand and consumer debt assets gradually becomes a focal point, indicating that China's economy has gradually transformed from being export-oriented and infrastructure investment-driven to being consumption-driven and domestic consumption grows to be an important economic growth engine. (Edited by Duan Jing, duanjing@xinhua.org)
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