PBOC blocks China's first ABS product

The People’s Bank of China has suspended the launch of the country’s first asset-backed security, South China Morning Post reported. Ping An Bank (000001.SHE) this month filed an application to sell a credit-backed product worth RMB2.8 billion (US$481 million) to the Shanghai stock exchange, which operates under the China Securities Regulatory Commission, without informing PBOC. PBOC insisted the suspension was in compliance with government directives, as institutions are required to file ABS issuance plans to the central bank before listing. Market observers said the power struggle among regulators is a major obstacle to reforming China’s finance industry.