Macro-Finance Salon (No. 57): Offshore RMB Asset Securitization
2017-04-23 IMI
Zhang Xiufen delivered a keynote speech entitled "Offshore RMB Asset Securitization in Hong Kong". She gave a detailed account of the reason for China's development of offshore asset securitization in Hong Kong, its potential size, as well as the related regulations, taxation, services and risks etc., and she also rendered some advice. She pointed out that the proper construction and wide use of onshore asset securitization platforms benefit the sales of China's asset securitization products to investors in international markets through Hong Kong offshore center. Besides that, these platforms are also successful examples of represent the adoption of international experience in China. With professional experience in providing asset securitization products in international capital markets, China can provide both technical and financial support to the infrastructure of countries along the Belt and Road.
Liu Borong addressed with the topic “Legal Issues about the Asset Securitization Pilot Program of the FTA of B&R Project". He mentioned that under the RMB internationalization strategy, the RMB outflow should be combined with the offshore RMB backflow to form a virtuous circle. In the early stage, we should issue RMB-denominated asset-backed securities based on domestic assets through the “window”—free trade area, in order to meet the need of foreign investors to invest on domestic assets. This is a good starting plan for offshore asset securitization. He suggested that, in order to obtain regulatory support, we can firstly establish some pilots which include the basic kinds of asset products supported by the industries and the financial sector. With the prerequisite that we have a sound communication with the supervision departments, we can raise creative solutions towards many problems such as the transfer and use of cross-regional funds, transnational assets services and the collection of recovered amounts, the due diligence of overseas base assets, project cooperation among intermediary agencies home and abroad and residential mortgage etc.
