China to expand asset-backed securities businesses

Will lower threshold to allow securities companies to do this.

China may allow more companies to market asset-backed securities businesses to expand liquidity. To do this, the China Securities Regulatory Commission will lower its threshold for securities companies to undertake this business.

CSRC said asset-backed securities could be based on accounts receivables, credit assets, bonds, stocks and commercial properties.

It has issued draft rules for the asset-backed securities business and is asking for public feedback. CSRC will also allow more futures companies to open business offices nationwide. It has simplified review and approval proceedings for the office openings.