China to boost asset-backed securities businesses

China may allow more firms to develop asset-backed securities businesses with the goal of boosting liquidity, the nation's market regulator said.

The China Securities Regulatory Commission will lower its threshold for securities companies to undertake such businesses, the CSRC said on Tuesday. Asset-backed securities could be based on accounts receivable, credit assets, bonds, stocks and commercial properties, it said.

The CSRC issued draft rules for the asset-backed securities business today and asked for public feedback, according to the statement. The CSRC will also allow more futures companies to open business offices nationwide. The regulator simplified review and approval proceedings for the office openings.