Core Viewpoint - The issuance scale of asset-backed securities (ABS) in China has significantly decreased in 2023 compared to the previous year, primarily due to regulatory tightening, economic uncertainties, and reduced demand from financial institutions [1][2]. Group 1: Market Overview - As of May 30, 2023, the total number of newly issued ABS in China reached 546, with a cumulative issuance scale of 676.74 billion yuan, representing a decrease of approximately 63% compared to the same period last year [1]. - The credit ABS market saw 42 issuances totaling 135.40 billion yuan, down by 260.34 billion yuan year-on-year [1]. - The corporate ABS market had 341 issuances amounting to 323.58 billion yuan, a decline of 202.56 billion yuan from the previous year [1]. - The asset-backed notes (ABN) market recorded 163 issuances totaling 217.76 billion yuan, an increase of 32.48 billion yuan year-on-year [1]. Group 2: Reasons for Decline - Regulatory policies regarding ABS have tightened since last year, leading to a noticeable drop in total issuance [2]. - Overall credit levels in China remain uncertain, which does not support high levels of ABS issuance [2]. - Factors such as the pandemic have resulted in insufficient supply of underlying assets for ABS, while demand from the real economy remains weak [2]. - Banks are maintaining a medium to high leverage level, with some city commercial banks and joint-stock banks continuing to deleverage, reducing their enthusiasm for issuing ABS [2]. Group 3: Product Breakdown - Among credit ABS products, personal auto loans accounted for the largest share, with an issuance scale of 94.16 billion yuan, representing approximately 69.53% of the total [3]. - Housing mortgage loans contributed 24.54 billion yuan, making up about 18.12% of the total issuance [3]. - Small and micro enterprise loans totaled 10.78 billion yuan, accounting for 7.95% of the total [3]. - Personal consumption loans reached 3.31 billion yuan, representing 2.44% of the total [3]. - Non-performing asset restructuring ABS amounted to 2.62 billion yuan, constituting 1.93% of the total [3]. Group 4: Future Outlook - The future issuance scale of ABS is expected to maintain a cautiously optimistic outlook, particularly for ABS related to non-performing asset disposal, influenced by real estate and deleveraging processes in financial institutions [3]. - The growth potential for small and micro enterprise loan ABS is uncertain due to insufficient market demand and the need for further regulatory support [3].