Money

China's 1st credit asset trading regulations released

(Peopledaily.com.cn)
Updated: 2010-09-21 17:40

Beijing Financial Assets Exchange (BFAE) officially released credit asset trading regulations on September 20.

Since there are no precedents in China, the release of the BFAE credit asset trading regulations indicated that the credit asset trading market now has to abide by regulations for the first time.

BFAE also issued membership cards and manuals of trading regulations to the first batch of members on September 20. The first batch of 10 credit portfolios was also officially listed, involving a total of nearly 9.9 billion yuan (US$1.47 billion) and will publicly search transferees with intentions in the market.

China's credit asset trading market has not been active enough due to reasons such as lack of mechanisms and channels, which has obstructed the rational and effective disposition of financial resources in the market to a certain degree. The establishment of the BFAE credit asset trading platform filled the gap in Beijing's financial product trading market and will play an important role in promoting the standardization of the national credit asset trading market.

Xiong Yan, chairman of the BFAE board, said that the research work into the full set of materials for the BFAE credit asset trading regulations began as early as the BFAE was being established. It took six months of independent research and development to complete.

BFAE collected various views and proposals and combined the actual situations of domestic credit asset trading and eventually formed a complete system of one plus nine. The contents of the regulations cover the entire process from trading application, listing, bargaining and bidding, closing, settlement and registration to asset management.