According to Fitch Ratings latest China structured finance quarterly report, issuance in China’s structured finance market rose 42% to a record high of US$126 billion in 2016, and will likely continue to expand in scale and breadth of asset classes this year. The report cited a 125% growth in issuance under the Asset-Backed Specific Plan (ABSP) scheme, with more diverse asset classes being marketed to corporate issuers.
Fitch’s rating of Shanghe 2016-1 Retail Auto Mortgage Loan Securitization Trust was the first time Fitch rated a Chinese auto-loan ABS transaction originated by a domestic Chinese finance company that is part of an auto group. Senior notes were rated ‘AAsf’. Fitch believes that performance in the ABS auto loan sector will remain stable in 2017.