China’s cash-strapped local governments drive record sales of asset-backed securities
ABS issues bring in badly needed money but some assets are of uncertain quality
ABS issues bring in badly needed money but some assets are of uncertain quality

Beijing seeks to minimise domestic defaults but fears over credit quality persist

Local banks stand to benefit most from the country’s large pool of savings

Systemic risk prioritised over international norms as country returns to zero failure era

Beijing raises $4bn as debt costs relative to Treasuries fall to historically low levels

Chinese policymakers are finally getting serious about boosting consumption

Beijing is trying to preserve its own stockpiles by limiting sales