China to securitize credit assets

China will expand a pilot programme for securitising credit assets, as the government looks for ways to clean up bad debts.

China's central bank said the country is at the start up phase of securitising credit assets. It said regulations are needed and risk control is the priority. The PBOC says, it will encourage the assets to be traded in and across interbank markets and exchange markets, in a bid to meet investor needs of asset allocation.