The State Council has "in principle" agreed with the ABS schemes submitted by the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC), Bank of China (BOC), and China Merchants Bank. ICBC, ABC and BOC will each issue more than 10 billion yuan of ABS, and Merchants Bank will sell about 6 billion yuan worth.

Two asset management companies (AMCs), China Orient and Cinda, will also issue ABS.

The preliminary size of the ABS products will total 60 billion yuan, with the underlining assets covering assets in bank card, consumer credit and non-performing loans.

At the end of last year, China launched its first ABS products by China Development Bank and first mortgage-backed securities issued by China Construction Bank.

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