Chinese Companies Boost Sales of Asset-Backed Securities in 2016

By Dong Tongjian and Wu Yujian

(Beijing) — Chinese companies doubled their sales of asset-backed securities (ABSs) to raise funds in 2016, a time when the central government was trying to boost the slowing real economy by increasing cash flows at companies.

Total sales of these securities in 2016 in China totaled 842.1 billion yuan ($121.6 billion), up 37% from 2015.

But sales in the China corporate sector more than doubled. Companies raised 438.5 billion yuan through the sale of ABSs with underlying assets such as lease and receivables, according to a report by the China Central Depository & Clearing Co. (CCDC). This was an increase of 114.9% compared with a year earlier.

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