CDB to pilot on asset securitization program

A financial product for a credit asset securitization pilot program is on schedule to be issued on Friday, an announcement from China Development Bank said.

The bank plans to issue the credit asset-backed securities in the national inter-bank bond market. The total issued value will be 10.17 billion yuan ($1.60 billion).

This will be the biggest issue by capital value since the start of the credit asset securitization pilot program in 2005, analysts said.

The move is a good way to relieve the pressure on commercial banks due to capital adequacy ratios, said analysts. It can also help improve the credit structure and reduce potential risks, they added.

Experts said that long-term investment funds, including the social security fund, may buy the new financial products in the future as its return rate is attractive. 

chenjia1@chinadaily.com.cn