Momentum continues building in China's ABS market after news emerged last week that China Development Bank has met with investors to educate them on the technical aspects of its Rmb5.3 billion ($654 million) infrastructure loan ABS. China Development, working with Lehman Brothers, and China Construction Bank were earlier this year given the green light to work on pilot securitization programs by the State Council, the legislative body responsible for the day-to-day running of the People's Republic.

China Development held a preliminary roadshow in Shanghai for its two-year transaction, which will securitize 62 corporate loans spread across 12 industries, including telecommunications, power and construction. The three-tranche deal will be rated by the China Chengxin Rating Agency, with Fitch Ratings also on board to oversee the credit worthiness of the deal.

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