Beijing’s tightening campaign has squeezed several non-loan asset markets throughout the past year, including corporate bonds, interbank wealth management products, and asset management products. However, issuance of asset-backed securities (ABS) has increased sharply this year, in part because of government support for securitization as a key instrument of corporate deleveraging. Far from reducing corporate debt burdens, ABS seem to be more frequently used to expand financing channels, particularly for consumers.
