China's securitization market benefits state-owned entities, raises concerns about fairness.
The asset securitization market in China has been growing from 2005 to 2015. The market is heavily influenced by government policies and regulations, making it less liquid compared to other countries. Most assets involved are corporate loans, not mortgages or consumer loans. State-owned banks and companies get better interest rates when issuing securitization bonds. Techniques like risk isolation and credit enhancement help improve the ratings of asset-backed securities.