Securitization in China: Déjà Vu?
In China, securitization has been promoted as a means of reducing reliance on the shadow banking system and ensuring that enough credit keeps flowing to a slowing economy. A cure for China?s banking woes may, in fact, be the instrument that nearly brought down the global financial system - securitiz...
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Published in | The journal of structured finance Vol. 21; no. 3; pp. 36 - 50 |
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Main Author | |
Format | Journal Article |
Language | English |
Published |
London
Euromoney Trading Limited
31.10.2015
Pageant Media |
Subjects | |
Online Access | Get full text |
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Summary: | In China, securitization has been promoted as a means of reducing reliance on the shadow banking system and ensuring that enough credit keeps flowing to a slowing economy. A cure for China?s banking woes may, in fact, be the instrument that nearly brought down the global financial system - securitized products. The author examines the history and structure of the Chinese securitization market. Whereas the US securitization market developed as a means to accelerate liquidity, the Chinese securitization market was initially established to deal with non-performing loans. The article discusses the pre- and post-2008 Chinese securitization market and provides an overview of newer securitized products being introduced to China in an effort to boost confidence in the banking sector. |
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ISSN: | 1551-9783 2374-1325 |
DOI: | 10.3905/jsf.2015.21.3.036 |