NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, October 23, 2013

Asset securitization is garnering renewed attention in China as the government, led by Premier Li Keqiang, has adopted a policy of stimulating the slowing economy by revitalizing financing channels without resorting to large-scale fiscal stimulus.

Against such a backdrop, Orient Securities and Alibaba have issued the nation’s first securitized product backed by microloans.

Guidelines on Financial Support for Adjusting, Transforming and Upgrading the Economic Structure, issued by the State Council on July 1, state that the government plans to promote credit asset securitization as a routine practice to stimulate funding by financial institutions and support microenterprises’ growth.