HONG KONG (S&P Global Ratings) Nov. 13, 2023--China's securitization issuance has been lackluster in the first three quarters of 2023 amid a slowing recovery of the overall economy and the weak property sector. New securitization issuance decreased by 10% year on year in the three quarters of 2023 to Chinese renminbi (RMB) 1,334 billion (US$182.8 billion). We expect annual issuance volumes to decline by 8% during 2023. This is according to a report, titled "China Securitization Performance Watch 3Q 2023: Consumer ABS Burgeoning Amid Lackluster Issuances," that S&P Global Ratings published today.
- New securitization issuance decreased by 10% year on year to RMB1,334 billion (US$182.8 billion) in the first three quarters of 2023.
- Issuance trends by asset type varied. We expect issuance of consumer finance asset-backed securities (ABS) to gain momentum due to favorable industry and regulatory dynamics. Issuance of auto loan ABS remained weak while residential mortgage-backed securities (RMBS) remained stalled.
- We estimate structured finance issuance in 2023 at RMB1.85 trillion, representing an 8% drop. The forecast is based on our economic outlook, issuance seasonality, and actual amount of issuance in the first half of 2023.
- A recent cut in mortgage rates led to lower interest income on RMBS transactions that we rate, and a one-off spike in prepayment, though this did not lead to any rating impact.
This report does not constitute a rating action.
The report is available to RatingsDirect subscribers at www.capitaliq.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by sending an e-mail to email@example.com. Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box at www.spglobal.com/ratings.
|Primary Credit Analyst:||Patrick Chan, Hong Kong + 852 2533 3528;|
|Secondary Contacts:||Yilin Lou, Hong Kong +852 2533 3524;|
|Andrea Lin, Hong Kong + 852 2532 8072;|
|Jerry Fang, Hong Kong + 852 2533 3518;|
|Melanie Tsui, Hong Kong +852 2532 8087;|
|Carol Hu, Hong Kong + 852-2912-3066;|
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