Asiamoney China Securitization Awards

The Chinese asset-backed securities market saw a boom in 2019, marked by relentless innovation and cutthroat competition. The winners of Asiamoney’s second China ABS awards have driven this growth

Securities Originator: Beijing Jingdong Century Trade Co., Ltd

Fangda Partners, founded in 1993, prides itself on having more senior securitization lawyers than any of its peers. The firm specializes in corporate asset securitization, credit ABS and ABN. Wu Dong and Yan Yan are the two partners leading the firm’s securitization market coverage.

China Chengxin International Credit Rating (CCXI) is the largest credit rating agency in China and the fourth largest in the world. A joint venture between China Chengxin Credit Management Co and Moody’s, CCXI claims to have rated every single ‘first’ deal in the ABS market.

Although the Chinese ABS market is still relatively young compared with those in more developed markets, domestic banks and securities houses have innovated relentlessly. From structuring supply-chain asset-backed securitization to securitizing a parking-lot’s future income, the market has an insatiable appetite for new asset types.

The asset-backed notes (ABN) market allows non-financial enterprises to issue securitization deals in the interbank market. Bank of China, more than any other firm, has led market developments.

Account-receivables asset-back securitization is unique to China. The underlying assets of account-receivables ABS can be roughly divided into two categories: enterprises’ account-receivables obligatory rights and factoring agents’ obligatory rights. Based on these two types of underlying assets, account-receivables ABS can be divided into general and reverse factoring or, as bankers call it, supply-chain ABS.

CSC was one of the first securities houses in mainland China to tap into the commercial mortgage-backed securities industry. Since 2014, it has arranged eight CMBS deals with a total value of Rmb22.4 billion ($3.2 billion), ranking number one in the market both in terms of number and volume of deals. The team was led by managing director Xie Changgang.

It was an easy decision to give China Merchants Securities (CMS) the award for best for residential mortgage-backed securities in China. The securities house, part of China Merchants Group, deserves the title in every possible way.