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China Merchants Bank gets approval to sell credit card asset-backed securities

The China Banking Regulatory Commission has granted China Merchants Bank permission to sell a new round of asset-backed securities backed by credit card debt, South China Morning Post reported, citing the general manager of the finance department at China Resources SZITIC Trust. The commission had in November called for a total halt on credit card asset-backed securities, but did not issue a formal statement on the ban. Now it appears to have taken a looser stance on regulating said financial products following an April announcement from the State Council that allowed banks to simply register the products before offering them, rather than get approval from both the commission and the People’s Bank of China.

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