China Construction Bank (CCB) will raise US$292 million in the first domestic commercial mortgage bond sale, Bloomberg reported, citing sources familiar with the situation. The planned sale requires government approval, which is expected next year as Beijing encourages the development of bond and asset-backed securities markets to reduce reliance on bank loans. CCB, China’s second-largest lender, was chosen by the government for a pilot program in 2005 that led to the country’s first sale of securities backed by residential home loans. Beijing is expected to make changes to regulations for asset-backed securitization after two further rounds of pilot programs.
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