CCB applies to start mortgage securitization

China Construction Bank (CCB) has applied to the State Council for permission to launch China's first residential mortgage-backed securitization program, according to the South China Morning Post. It said the bank plans to build an asset pool from its mortgage portfolios in several mainland cities, but the size of the pool is not publicly known. The CCB plan is one of two mortgage securitization proposals now before the State Council. The other bank awaiting approval is China Development Bank. Loans and other products have been securitized in China before, but never residential mortgages.