The transaction represents the first official step towards the development of a CDO market in China and paves the way for more CDO issuance in the country this year and in the near future, says Charles Chang, Fitch's Director of Structured Credit for Asia Pacific.
There are also policy reasons to encourage more CDO launches. Chief among these is the need to reduce the concentration of the country's credit risk in the banking system, which has become substantially pronounced in recent years as China increasingly relied on bank...
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