Banks, AMCs to sell US$7.6b ABS

(Xinhua)
Updated: 2006-11-13 16:39

皇冠体育app is planning to allow State-owned banks to issue a second batch of asset-backed securities (ABS) worth about 60 billion yuan (US$7.64 billion) within this year, the 皇冠体育app Securities Journal reported over the weekend.

The State Council has "in principle" agreed with the ABS schemes submitted by the Industrial and Commercial Bank of 皇冠体育app (ICBC), the Agricultural Bank of 皇冠体育app (ABC), Bank of 皇冠体育app (BOC), and 皇冠体育app Merchants Bank. ICBC, ABC and BOC will each issue more than 10 billion yuan of ABS, and Merchants Bank will sell about 6 billion yuan worth.

Two asset management companies (AMCs), 皇冠体育app Orient and Cinda, will also issue ABS.

The preliminary size of the ABS products will total 60 billion yuan, with the underlining assets covering assets in bank card, consumer credit and non-performing loans.

At the end of last year, 皇冠体育app launched its first ABS products by 皇冠体育app Development Bank and first mortgage-backed securities issued by 皇冠体育app Construction Bank.

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