China Brings Out The Nukes For Real Estate: MBS

So says the headline in iFeng. Industry insiders seem to think MBS is the most positive development for the market in the near term. China also needs a deep securities market if it wants the yuan to becomes a reserve currency and MBS is one way to kill two birds with one stone, encouraging more lending to home buyers and creating a larger bond market.

iFeng: 中国楼市的核武器来了 房贷证券化将引爆楼市 (Real Estate's Nuke Has Arrived Mortgage Securitization Will Ignite Market)

China expands asset securitization to boost real economy
China is expanding its asset securitization pilot program so that banks can channel more money to areas where it's most needed.

Credit asset securitization (CAS) worth 500 billion yuan (81.8 billion U.S. dollars) is in the pipeline, according to a statement released after a State Council executive meeting on Wednesday.

...At 300 billion yuan, the market accounted for a tiny 0.5 percent of China's GDP last year, a far cry from 60 percent in the United States and 22 percent in Britain, and trailing behind Japan's 3.6 percent, statistics from the China International Capital Corporation show.

China to publish information disclosure rules on ABS issuance
China's central bank will soon publish rules on information disclosure for the issuance of asset-backed securities (ABS), sources with direct knowledge of the matter told Reuters.

The first regulations will be on ABS related to auto and housing mortgages, the sources said on Thursday.

The rules will require issuers to make public the statistics of the underlining assets as well as historical data on such assets, they said.

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