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After all, China has the wildest lending practices anywhere on earth. Are you sure that some of that has not ended up in your RMBS?
Chinese banks’ issuance of securities backed by home mortgages has plunged, as the crisis in the nation’s property sector drags down a once-popular and relatively safe investment tool.
Sales of residential mortgage-backed securities have fallen 92% so far this year to 24.5 billion yuan ($3.63 billion), according to data compiled from cnabs.com, a website that tracks asset-backed securities in China. There’s been no RMBS issuance since the end of February, the longest dry spell since 2015.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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