CHINA JOINS IN

ChinaView.cn reported that The China Development Bank (CDB) will launch asset securitization this year after about three years of preparation.

Securitization, which originated in the United States in the 1970s, and has grown a following in Europe, has become a major financial instrument around the world. Asset securitization can be defined as changing non-liquid assets (mortgages, automotive financing) into securities that can be traded in a capital market. The practice bridges currency and capital.

Earlier this year, authorities ratified the asset securitization plans in the China Development Bank (CDB) and China Construction Bank (CCB).

The CCB, one of the country's Big Four state-owned commercial banks, will launch the asset securitization move backed by housing mortgage loans.

The CDB, a policy bank whose loans largely go to construction of infrastructure, was given the green light to securitize its loan assets, involving electric power, railway, high ways, airports, ports and other public facilities, and energy industries including oil and natural gas.