It is reported that the Chinese government has granted a total bad loan securitization quota of 50 billion yuan to the commercial banks, the first quota for such sales since 2008.

ANBOUND's research team believes the bad assets in the banking industry are growing rapidly and that the relaunching of the asset-backed security is yet another measure to alleviate the bank’s pressure after the government’s decision to consider mulling lower minimum bad-loan coverage.

The scale of this type of asset-backed securitization is bound to expand sizably in the future.