According to the Association of Interbank Dealers, the first two issues of single asset-backed notes (ABN) bonds have been successfully issued recently, which is also the first batch of ABN bonds successfully issued after the bond was opened.
Foreign investors can participate in the subscription through "Bond Pass". Among the two ABN bonds, "Beijing JD.COM Century Trading Co., Ltd. 20 18 Asset-backed Notes" and "Haitong Hengxin International Leasing Co., Ltd. 20 18 Asset-backed Notes" attracted overseas investors to subscribe.
It is understood that the full name of ABN bond is asset-backed securities, also known as asset-backed securities or asset-backed securities. It is a bond or bill issued by banks, credit card companies or other credit providers as a guarantee basis.
In ABS, it can be divided into narrow ABS and CDO. The former includes securitization products with credit card loans, student loans, automobile loans, equipment leasing, consumer loans, housing asset mortgage loans, etc., while the latter is a securitization product with bank loans as the target assets that has developed rapidly in recent years.
Advantages of ABN bonds: more effective risk isolation measures, new operation means of asset-backed notes, more effective monitoring of repayment cash flow through account and cash flow control measures, and even asset isolation.
With the sustained and stable development of China's economy and the acceleration of RMB internationalization, the demand for overseas investors to allocate RMB assets will be increasing. At the same time, China has also taken various measures to lower the threshold for foreign investors to enter the mainland bond market and increase its opening up.
On the one hand, the launch of "Bond Connect" is conducive to attracting more investors and broadening the sales channels of this bond. On the other hand, Haitong Hengxin Leasing ABN Project has successfully joined hands with overseas investors through Bond Connect, which is conducive to further promoting the implementation of Bond Connect, enriching the investor structure of China inter-bank bond market and further enhancing the liquidity and activity of China bond market.