Fujian-based Industrial Bank has found a way to use securitization to wriggle free of the local government bonds investment burden all such banks face. The solution is simple: bundling them for sale online to peer-to-peer (P2P) investors, reports the South China Morning Post. Mainland online P2P crowd-funding platform Caimao said last week it had clinched a deal with Industrial Bank, which would see its local government bond portfolio securitized and distributed to investors online. In the first batch of product to be sold under the agreement, RMB600 mn worth of local government bonds held on Industrial Bank’s balance sheet would be bundled and distributed by Caimao.
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