Exclusive: China securitization plan expanded to include foreign banks - sources

Chinese regulators have expanded a pilot plan allowing banks to package loans into tradable securities to include foreign banks, sources said. Chinese policymakers see securitization as a tool to shift risk away from the banking system to reduce the chances of a financial crisis as economic growth slows and bad loans rise. Securitization would also help satisfy voracious investor demand for alternatives to the chronically weak stock market and frothy property sector. Chinese Premier Li Keqiang told a cabinet meeting in late August that China would aggressively expand the securitization of credit assets.

via Business News - Yahoo Finance http://finance.yahoo.com/news/exclusive-china-securitization-plan-expanded-084708096.html