Authorities have approved 27 second-tier mainland banks to sell asset-backed securities through a registration system that will no longer require them to apply to regulators for review and approval before issuance, Reuters reported, citing unnamed sources. The banks, which include Ping An Bank (000001.SHE) and Shanghai Pudong Development Bank (600000.SHA), now need only to register to float such securities, which are created by packaging together a pool of underlying assets–such as car loans or credit-card balances–which are difficult to sell individually.The State Council has pushed banks to use asset-backed securities to invigorate existing assets and help the government curb rapid growth in the money supply in recent years.
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