Asiamoney China Securitization Awards

China Chengxin International Credit Rating (CCXI) dominated ABS ratings during the awards period with a market share of more than 55%, well ahead of its closest competitor, which had a 27% share.

Citic Securities has an enviable position in China’s ABS market: it boasts a structuring team with the ability to innovate and a large enough client base to test out those new ideas. The firm has notched up several landmark deals, each opening new ground for others to follow.

Bank of China is the leader in the asset-backed note market. Led by Zhu Dan, vice general manager of the investment banking and asset management department, Bank of China’s team had another good year, taking the top spot in the league table again. The bank underwrote 49 ABNs worth Rmb48.4 billion ($7.4 billion) during the awards period, according to Wind data – up 58.2% from its previous record Rmb30.6 billion of ABNs in the last awards period.

The Chinese account receivables securitization market has expanded dramatically over the years. In 2017, there were 141 deals with a total value of Rmb158.6 billion ($24.3 billion). By 2019, there were 569 new deals worth Rmb428.5 billion. In the first 11 months of 2020, 739 deals with a total value of Rmb653.1 billion were sold, Wind data shows.

For the third year in a row, China Merchants Securities (CMS) has stood out from the crowd in China’s residential mortgage-backed securities (RMBS) market.

CICC underwrote six commercial mortgage-backed securities (CMBS) deals with a total value of Rmb16.52 billion ($2.53 billion) during the awards period, representing a market share of 27.67%. In terms of CMBS issuance deal numbers and volumes, the securities house ranked first and second respectively.

It was an easy decision to give the auto ABS house award to Citic Securities. The advantage the securities house has in the market is impossible to overlook.

Competition for this year’s best house for securitization was fierce. Despite the Covid-19 pandemic, new issuance in China’s ABS market still rose 16.1% to Rmb2.585 trillion ($396 billion) during Asiamoney’s awards period, between October 2019 and the end of September 2020, Wind data shows.