Zhou Xiaochuan, governor of the People’s Bank of China, answers questions at a news conference on the financial reform and development on the sidelines of the fourth session of the 12th National People’s Congress in Beijing, capital of China, March 12, 2016.[Photo/Xinhua]
The market of asset-backed securitization (ABS) is quite small in China and risks can be prevented through better oversight and transparency, central bank governor said on March 12.
Responding to queries about the bank’s ABS practice which might transfer risks in nonperforming assets to other market players, Zhou Xiaochuan, governor of the People’s Bank of China, said it is a “market practice,” and buyers are able to assess the risks.
China’s ABS started “relatively late” and the mortgage-backed securitization would be among the country’s first step in tryouts, Zhou said at a news conference on the sidelines of the national legislature annual session.