China’s securitization market has experienced significant growth, as regulators modify rules to help banks and other financial institutions free up capital for lending and to facilitate transactions by issuers and underwriters. In 2015, issuance of domestic asset-backed securities (ABS) and credit asset-backed securities (CABS) increased by 84% to RMB 600 billion compared to 2014.
Current and prospective market participants need help familiarizing themselves with the regulatory framework. China does not have a comprehensive securitization law, and many departmental rules are only available in Chinese. Access is a particular problem for foreign financial institutions and investors. Jinfei Zhang, a partner in Sidley’s New York office, has written a comprehensive regulatory overview of Chinese securitization, including key legal issues relating to the issuance, listing and trading of asset-backed securities. Written with both lawyers and business people in mind, “The Law of Securitization in China” also highlights areas for future reform, such as moving from the current pre-approval system to a streamlined registration system and integrating the ABS and CABS markets.
Please click here to view “The Law of Securitization in China” in Securitizations: Legal and Regulatory Issues published by Law Journal Press in 2015.