Chinese securitisation market risks fragmentation under current dual framework

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China's dual regulatory structure for securitisation could fragment the market on product lines just as the regulator is trying to increase use of this instrument to improve bank liquidity management, according to market participants. The Chinese State Council expanded the pilot programme for securitisation to allow high-quality credit asset transactions to be traded on the stock exchanges in Shanghai and Shenzhen on August 28 this year. The securitisation programme in China was initially lau