The asset-backed-securities market is a growing funding source for auto lenders in China as issuances have topped $36 billion in funding between 2008 and 2017, Aaron Lei, senior director and analytical manager of structured finance ratings at S&P Global Ratings, said in a March report.
He’ll be joining the Auto Finance Summit Asia speaker roster for a presentation entitled “Investment and Auto Financing,” in which he’ll discuss investors in Asian assets, how to track performance of recent investments, and gauging global investor appetite for Asia securities.
The Auto Finance Summit Asia will take place September 5-6 at the Grand Hyatt Shanghai.
The appetite for capital market funding in China’s auto finance market has been growing, he said in the report. Among the 25 auto finance companies in China, 14 have issued at least one transaction and 11 have issued two or more.
In particular, banks have been active in the space with six Chinese banks issuing 12 auto-related receivables securitized between 2014 and 2017, the report states. Banks accounted for more than $70 billion in ABS funding during that period — or 20% of the total market.
Of course, the U.S. market remains more developed for this avenue of funding as more than $71 billion in auto asset backed securities were issued last year alone. However, as more captives move into the Chinese space, S&P predicts this will increase the volume of issuances as captives globally are the largest drivers of auto ABS.