Releasing time:November 6, 2019

Wisdom Collision of Leaders in the Industry Prospect of the Development of Cross-Border Asset Securitization

On November 5, 2019 CCI-FS "Forum of ABS Driving the Basic Industries along the Belt and Road" was held in Niccolo Chongqing. The forum was chaired by Wang Dayong, the vice chairman of Hanhua Financial Holding. Cai Esheng, vice chairman of the Standing Committee of China Finance 40 Forum and former vice chairman of the China Banking Regulatory Commission, Wang Hongzhang, president of the Northeast Asian Economic Research Institute and former chairman of China Construction Bank, Priyanto B. Nugroho, minister of financial market development of Bank Indonesia (the central bank), Liu Jin, honorary president of Hong Kong Association of Overseas-Returned Scholars (HKAORS), Primon Thomas, strategic director of Scalar Capital, and Yang·Vic, partner of Allen & Gledhill LLP attended the forum and delivered speeches.

Wang Dayong said that the co-construction of "the belt and road initiative" will bring huge development opportunities, but enhancing the vitality of relevant countries, promoting rapid economic development and the construction and development of basic industries and infrastructure are relying on financial support. Asset securitization provides an effective tool for solving large-scale and long-term financing needs. However, due to the complex transaction structure and high credit risk of asset securitization, and even the different policies and measures adopted by different countries, the issuance risk of cross-border asset securitization has been increased. This forum aims to explore how to expand the market players of cross-border asset securitization through system, mechanism and policy innovation, improve financing efficiency and reduce financing costs, and provide diversified financial tool support for more enterprises to go out and import.

Cai Esheng thinks that the securitization of cross-border basic industries should be started from legal level, tax system, foreign exchange management policies and the solutions to transparency and technical design of structural products.

Wang Hongzhang believes that in the process of promoting asset securitization along "the belt and road", attention should be paid to the diversity of market players and the shortage of professionals.

At the forum, Priyanto B. Nugroho shared his experience from the perspective of the Bank Indonesia. He said that the role of the Central Bank is as an organizer and initiator, and through the introduction of regulatory incentives, relevant government regulatory departments will be encouraged to introduce policies that are more inclined to ABS asset securitization development. Liu Jin introduced how to implement cross-border asset securitization from a practical perspective. Primon Thomas shared Scalar Capital's experience in asset securitization. In addition, Yang Vic explained asset securitization in detail.

This forum provides new ideas for the further development of cross-border asset securitization through the intellectual collision of so many leaders in the industry that it will have a cutting-edge impact in the industry. Look ahead! Cross-border asset securitization will develop vigorously and steadily under the standardized path.