与股票和一般债券不同，“资产支持证券”不是对某一经营实体的利益要求权，而是对“基础资产池”（pool of underlying assets）所产生的现金流和剩余权益的要求权，是一种以资产信用为支持的证券。
根据国际“渣打银行”(Standard Chartered)大中华区研究部主管王志浩(Stephen Green)的估算，到今年6月底，中国总债务与国内生产总值(GDP)之比，已经达到251%。
Asset Securitization Appears Again
Expert: Risk is Shifted to the People
Asset securitization products appear in China again
after an interval of 7 years.
Banks, financial institutions, and state-owned
enterprises are scrambling to release asset securitization
The official media demanded the normalization of credit
It’s believed to be the last trick to pull the last money out of
the people from Chinese Communist Party (CCP) in such
seriously vulnerable economic conditions.
July 22, China Postal Savings Bank issued mortgage securities
to the value of 6.8 billion RMB.
The same day, the CITIC Bank issued asset securitization
products of 6.1 billion RMB by tender and Taizhou Bank
issued asset securitization products worth 530 million RMB.
Asset securitization is to sell assets which
lack liquidity but with predictable income by issuance of
securities to obtain finance.
July 22, mainland Financial Times issued an article to boost
The article said that recent asset securitization product
issuers have moved from the National Development Bank,
large commercial banks to the city commercial banks, auto
finance companies, etc.
The underlying asset also involves multiple categories
including individual mortgages, and car loans.
It means China credit asset securitization gradually moves
to so-called normalization.
The article also cited a number of experts to demonstrate
how reliable this so-called asset securitization is.
Professor Xie Tian, University of South Carolina
School of Business: “this is actually blatant robbery.
Chinese financial securities are at a very vulnerable point;
but the Chinese government is still puffing it up.
Security traders, the media, the government are united
in their applause.
People cannot truly understand the risk of asset-backed securities.
It’s actually a blatant fraud on the Chinese people."
Asset-backed securities are also known as ABS.
It uses a specific asset or a cash flow as mortgage assets for
finance, rather than the overall company finance.
Thereby, it reduces financing cost and limits debt risk.
ABS is different from stocks and bonds, it doesn’t claim
on the interests of a specific operating entity, but claims
on the cash flow and residual interest generated by the pool
of underlying assets.
It is kind of stock supported by asset credits.
Thus, principal payment time for ABS related products
He Junqiao, mainland corporate observer: “Asset securitization
is nothing more than dumping the burden to let people take
the debt as the whole financial industry is corrupt and dark.
The attempt is to shift these debts to the people
so the central government would have a way out.
It is not the right way."
The ABS pilot program has been widely criticized since it
started in 2005.
In 2009, the ABS project had to be stopped.
In 2012, China restarted the project and gradually expanded it.
The reason that someone supports ABS in China is because
the US and other Western countries have used it for a long time.
Xie Tian: “There are a lot of financial products,
securities products used by private companies in U.S.
The US government precisely takes the supervision and
inspection role to completely disclose all risks.
Once the government finds fraud from the securities
trader, the Government will directly prosecute without profit.
It is in fact to protect the interests of consumers.
The Chinese government is just the opposite.
The media also helps to deceive. “
According to the head of the Greater China research team in
Standard Chartered Bank Stephen Green’s estimate, by the end
of this June, China’s total debt has reached 251% compared to
gross domestic product (GDP).
There are lots of due debts can not be paid in China.
For example, the Shanxi Huatong Road & Bridge Group Co.
400 million yuan of debt expired on July 23 facing default.
Eventually, the Shanxi provincial government intervened to
complete debt repayment.
There was other debt default in the first half year and the government
also came out to solve it.
Recently, more essential default debts were exposed.
July 10, 12 Jintai debt which is underwritten by Zhejiang
Securities could not pay the principal and interest.
According to domestic media reports, 59 billion private
enterprises’ debt payments are in crisis.
These debts were solved by the government through printing
money which resulted in inflation.
Who is the real victim?
Interview & Edit/Liu Hui Post-Production/Zhong Yuan