Lender unveils first ABS product in China
The tender of China’s first assetbacked securities product launched by a foreign-funded bank concluded on Tuesday, according to China Chengxin International Credit Rating Co Ltd. China Chengxin, which rated the product, said in a statement that the product launched by HSBC Holding Plc sold its 995 million yuan ($154 million) of priority securities in the interbank market with a 4.95 percent coupon rate. The Bank of Communications International Trust Co Ltd served as the underwriter to the sale. This is a major breakthrough in China’s credit asset securitization as it is for the first time that the seller of an ABS product is not from a State bank, but a foreign lender. last month brought it the closest ever to surpassing the United States as the Asian country boosts emergency stockpiles and America’s shale boom reduces the need for oil from overseas. China bought 7.19 million barrels a day of foreign oil in December, data released by the General Administration of Customs in Beijing showed on Tuesday. The US imported about 7.53 million barrels a day on average over that period, according to the Energy Information Administration. The difference was the smallest on record for monthly purchases by the world’s two largest oil consumers, the data show.