Recently the first annual appraisal of Chinese asset securitization was held in Beijing, IB received five awards including “2016 Accounts Receivable ABS Best Risk Control Award” and “2016 Housing Provident Fund Loan ABS Best Asset Award”, indicating that IB follows market development trend and asset securitization serves the real economy. It has occupied first-mover advantages.
The year of 2016 saw a constant and explosive growth in Chinese asset securitization market. According to 2016 Asset Securitization Development Report issued by China Securities Depository & Clearing Co., Ltd., asset securitization products in China reached RMB 842.051 billion last year with a YOY growth of 37.32%. Among them, IB launched asset securitization products of RMB 153.927 billion, accounting for 18.28%. It continued to take the lead in the industry.
In this appraisal, with IB as the lead underwriter and China Credit Trust as management agency of issuance carrier, 2016 trust asset backed notes (Stage I)(ABN) of Jointown Pharmaceutical Group Co., Ltd. got “2016 accounts receivable ABS Best Risk Control Award”. In early 2016, IB was qualified to develop pilots of trust ABN projects. On June 29th, with IB as the lead underwriter, Jointown Pharmaceutical Group trust ABN project was successfully launched with a total scale of RMB 1 billion. It is the first trust ABN with circular purchase structure in the inter-bank market. The product converts disjointed non-standard accounts receivable of pharmaceutical circulation enterprises with low asset turnover rate and which are hard to determine the rights into standard products of inter-bank market, help enterprises obtain low-cost funds and effectively resolving the problem of financing. At the same time, trust ABN takes trust of special purpose as the issuance carrier, and basic assets as support, effectively realizing the isolation of risk, increasing credit and preventing risk.
Moreover, IB strengthens collaborative linkage in the group, and vigorously promotes securitization business of provident fund. “Huzhou Provident Fund Xingqian I” issued by IB in cooperation with IB Fund, a subsidiary of IB, got “2016 Housing Provident Fund Loan ABS Best Asset Award”. This product has a total scale of RMB 4 billion and is the first asset securitization product of housing provident fund listed in securities exchanges. In 2016, IB completed 4 transactions of asset securitization business of provident fund with a total scale of RMB 4.3 billion, playing a positive role in activating the stock of assets in local provident fund centers, improving the efficiency of provident fund, supporting the real estate in reducing the number of unsold homes and meeting people's needs.
It was worth mentioning that, as a leading enterprise of green finance in China, IB actively sets up whole product chain of green finance. After issuing China's first green financial credit assets backed securities in 2014, IB also launched the first green credit asset securitization product in the inter-bank market in 2016 with a scale of RMB 2.6457 billion, and the stock of funds activated were put into key areas of energy conservation and environmental protection. Owing to innovative structural design in the field of green financial asset securitization, the bank won “2016 Green Finance ABS (Credit) Best Structure Award”. What’s more, IB received “2016 ABS Best Investment Institution Award” and Industrial Bank Economy Research Consulting Company, a member of the group, won “2016 ABS Most Potential Plan Manager Award”.
In recent years, centering upon setting up “big investment bank” business system layout, IB takes advantage of comprehensive and group operation, makes more innovations, gives full play to the positive role of asset securitization in addressing overcapacity, reducing inventory, deleveraging, lowering costs and bolstering areas of weakness. It offers various products and the basic assets cover provident fund loan, ordinary accounts receivable of enterprises, usufruct of power line communication and rental receivable. Asset securitization develops rapidly and provides better service for the real economy in a more efficient way.