Asiamoney China Securitization Awards

Auto ABS was one of the earliest sectors to develop in the Chinese securitization market. With time, market participants have improved deal structures and nurtured a relatively stable pool of investors.

Banks and securities houses have raced to grab market share and come up with new products with higher levels of structural complexity. In a conversation with Asiamoney, one head of structured finance at a securities firm warned that the Chinese asset-backed securities market may have already become too crowded.

China’s asset-backed securitization market, already the largest in Asia, still has plenty more room for growth. The winners of Asiamoney’s China ABS awards are helping to push that expansion – one deal at a time

Originator: China Construction Bank

CCXI, the first rating agency in China, has by now become familiar with moving faster than its peers. A 70/30 joint venture between China Chengxin Credit Management Co and Moody’s, it was the first company to rate an ABS product in China, and has stayed ahead of the pack ever since. It’s chair is Yan Yan.

As China’s securitization market expands, it also grows in complexity. Originators now demand tailor-made client solutions and structural innovations. CICC, more than any other firm, has answered this call.

Over the year, HSBC has established itself as one of the leaders in the securitization market in China, having become the first foreign bank to act as sub-underwriter, and then a joint lead underwriter, in 2015. Since then, it has earned a reputation as a savvy player in China’s fast-growing market under Kyson Ho, head of structured finance.

RMBS is the largest asset class in the onshore China securitization market, thanks to the consistent deal flow and the benchmark size of many transactions. The steady volumes have led to quite a standardized market, but this year China Merchants Securities proved that innovation is still possible.

Chinese banks, securities houses and foreign banks operating in China (either through their local branches or an onshore joint venture) have worked hard to boost not only volumes in the asset-backed securities market, but also the level of structural complexity.