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Minsheng set to sell more residential mortgage bonds

Minsheng set to sell more residential mortgage bonds

(9 July 2015 – China) China Minsheng Banking Corp is planning to sell China’s third residential mortgage-backed note as policy makers revive offerings to support the property market.

China Minsheng Bank will sell RMB779.5 million (A$168.5 million) of the securities on 10 July.

China Construction Bank Corp has also been approved to offer a RMB50 billion of residential mortgage-backed securities (RMBS), according to a statement at the beginning of July.

The Chinese government is currently expanding funding opportunities in the RMB29 trillion bond market, to help property companies cope with a housing slump and stock plunge.

In 2005 China started allowing securitisation, but had to halt it in 2009 following a collapse of subprime RMBS, as part of the global financial crisis.

Authorities have brought back issuance in July 2014, following a six-year hiatus.

Since the renewal of sales last year, Postal Savings Bank of China sold RMB6.81 billion of RMBS in July 2014 and China Merchants Bank issued RMB3.15 billion of notes in March 2015.

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