With standardized asset-backed securities (ABS) exempt from new regulation and China’s public Real Estate Investment Trusts (REITs) tipped for exponential growth, the asset management industry has its new champions, writes Frankie WangChina’s asset-backed securities (ABS) market is massive and its stellar growth shows no sign of slowing, with offerings totalling RMB2.34 trillion (US$334.41 billion) and the market inventory surpassing RMB4 trillion last year, according to the 2019 Asset Securitization Development Report issued by China Central Depository & Clearing.The Guidelines on Regulating the Asset Management Business of Financial Institutions have affected the industry from every aspect, but standardized ABS are exempt from this regulation, leading to the innovation of ABS products and their structures.
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