Core Viewpoint - The ABS market in China experienced a growth in the first quarter of 2026, with a total issuance of 466 projects amounting to 4,152 billion yuan, representing a 4% increase compared to the same period in 2025 [2]. Market Overview - The cumulative outstanding scale of the ABS market reached approximately 35,121 billion yuan by the end of the first quarter of 2026, with credit ABS at 3,917 billion yuan, enterprise ABS at 22,841 billion yuan, ABN at 6,211 billion yuan, and public REITs at 2,151 billion yuan [1]. New Issuance Statistics - In the first quarter of 2026, the credit ABS market saw 29 new issuances totaling 325 billion yuan, a 42% year-on-year increase. The largest issuance was in personal auto loans, with 6 projects totaling 207 billion yuan, followed by non-performing loans with 22 projects totaling 108 billion yuan [6]. - The enterprise ABS market had 344 new issuances totaling 2,960 billion yuan, marking a 12% year-on-year increase. The largest issuance was in financing lease receivables, with 80 projects totaling 765 billion yuan, followed by corporate receivables with 45 projects totaling 411 billion yuan [7]. - The ABN market had 93 new issuances totaling 867 billion yuan, a 14% decrease year-on-year. The largest issuance was in bank/internet consumer loans, with 30 projects totaling 261 billion yuan, followed by general small loan receivables with 24 projects totaling 193 billion yuan [11]. Underwriting Rankings - In the first quarter of 2026, CITIC Securities led the underwriting rankings with 102 projects and a total underwriting amount of 582.6 billion yuan, followed by Guotai Junan with 85 projects totaling 418.6 billion yuan, and Ping An Securities with 64 projects totaling 370.8 billion yuan [13][15]. Detailed Market Rankings - In the credit ABS market, the top underwriters were: 1. China Merchants Securities with 58.1 billion yuan from 16 projects 2. CITIC Securities with 54.5 billion yuan from 13 projects [19]. - In the enterprise ABS market, CITIC Securities led with 446.4 billion yuan from 71 projects, followed by Guotai Junan with 368.6 billion yuan from 69 projects [22]. Asset Class Rankings - The top three asset classes by issuance scale were financing lease receivables, bank/internet consumer loans, and corporate receivables. In the financing lease category, Ping An Securities led with 191.2 billion yuan, followed by CITIC Securities and Guotai Junan [25]. - In the bank/internet consumer loan category, Huatai Securities led with 94.0 billion yuan, followed by CITIC Securities with 72.0 billion yuan [28]. - In the corporate receivables category, Ping An Securities led with 51.2 billion yuan, followed by Guotai Junan and CITIC Securities [32]. Issuer Rankings - In the credit ABS market, Jizhi Auto Finance topped the issuer rankings with 55.0 billion yuan, followed by Dongfeng Auto Finance and Volkswagen Auto Finance [35]. - In the enterprise ABS market, CITIC Financial Asset Management led with 150.0 billion yuan, followed by Huaneng Guochan Trust with 132.0 billion yuan [42].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the report. 2. Core Viewpoints of the Report - ABS plays a counter - cyclical complementary role in the investment - financing cycle, serving as an important tool for enterprises to revitalize stock assets and relieve liquidity pressure during credit contraction periods [1][13]. - In the current environment of weak entity financing demand and insufficient credit supply, ABS supply has the basis for expansion. It maintains a clear spread stratification and high - yield varieties have prominent relative advantages, while its low - volatility feature can effectively smooth net value fluctuations [4][71]. 3. Summary by Relevant Catalogs 3.1 China's Asset Securitization Development Process and Market Status - **Investment - financing cycle division**: Credit bonds are pro - cyclical, while ABS is counter - cyclical, being more sensitive to underlying asset supply, regulatory orientation, and specific market cycles [1][13]. - **Regulatory pattern**: A "tripartite confrontation" regulatory pattern has been formed, with enterprise ABS, ABN, and credit ABS having different regulatory institutions, base asset types, and issuance methods [14]. - **Twenty - year evolution**: ABS has gone through stages of exploration, normal issuance, rapid development, and structural adjustment, with the issuance scale reaching 2.31 trillion yuan at the end of 2025 [17]. - **ABS stock market**: The supply of ABS in the whole market is concentrated on core assets, with the top 10 base asset types accounting for 86.4% of the total balance [26]. 3.2 ABS Primary Supply - **Interest rate and duration characteristics**: The primary supply of ABS shows significant interest rate differentiation and is dominated by short - duration products. Credit ABS has the lowest interest rate center and the smallest fluctuation, ABN pricing is highly consistent with the whole - market credit bonds, and enterprise ABS has a relatively high interest rate [30]. - **Spread stratification**: Credit ABS is the market's safety cushion with low spreads, ABN has medium spreads and income elasticity, and enterprise ABS is the main source of spread differentiation [33]. 3.3 ABS Secondary Market and Institutional Behavior - **Liquidity of varieties**: The overall liquidity of ABS is weaker than that of traditional credit bonds, but it is improving marginally. ABN has the best liquidity, followed by enterprise ABS, and credit ABS has the weakest liquidity [2][38]. - **Liquidity differentiation of base assets**: Assets with good credit, stable cash flows, and high standardization have high turnover rates, while bank credit and real - estate assets have low turnover rates [39]. - **Change in holder structure**: The holder structure of ABS is transforming from bank - dominated to diversified participation. In the inter - bank market, large - state - owned banks reduce their holdings while joint - stock banks increase theirs. In the exchange market, non - bank institutions such as insurance, public funds, and trusts are becoming new incremental funds [46][50]. 3.4 Analysis Framework for Various Base Assets - **Real - estate ABS**: It is supported by the dual credit of asset operation cash flow and disposal value. The core evaluation dimensions are the valuation rationality and realization potential of the underlying assets [54]. - **Operating claim ABS**: The cash flow depends on the contract claim income of enterprise operations, and the credit analysis focuses on the credit of the original equity holder and other credit - enhancing entities [59]. - **Bank credit ABS**: It has the attribute of quasi - financial bonds and is an important tool for banks to release capital and optimize statements. The historical performance and distribution characteristics of base assets are important for credit judgment [62]. - **Non - bank claim and other ABS**: It mainly comes from non - bank financial institutions, and the credit analysis needs to focus on the risk - control ability, asset quality, and compliance of the credit subject [66]. 3.5 ABS Investment Strategy - **Duration strategy**: Moderately lengthen the duration and focus on 2 - 3 - year varieties to lock in long - term income and reduce reinvestment risk [77]. - **Liquidity strategy**: Use ABN and credit ABS with good liquidity as the bottom - position assets, and moderately allocate high - yield varieties in the exchange market while controlling the single - variety exposure [77]. - **Portfolio strategy**: Build a diversified portfolio with credit ABS as the safety cushion, REITs for income elasticity, and supply - chain ABN for liquidity [77].

Market Overview - In Q4 2025, the asset securitization market issued a total of 658 transactions, amounting to 6,920.4 billion yuan, representing a year-on-year growth of 7.8%[9] - The total issuance for the year reached 23,170.8 billion yuan, with a year-on-year increase of 13.4%[9] Market Composition - In Q4 2025, the composition of the market by issuance amount was as follows: Credit ABS at 15.2%, ABN at 22.8%, and Corporate ABS at 62.0%[9] - The issuance of Credit ABS in Q4 2025 was 1,049.1 billion yuan, showing a significant year-on-year growth of 32.2%[9] Product Performance - The issuance of auto loan ABS in Q4 2025 was 649.9 billion yuan, marking the first quarterly year-on-year rebound for the year[9] - NPAS products remained the most active, with 44 transactions and a slight year-on-year increase of 6.0% in issuance amount[9] ABN Market Trends - ABN issuance in Q4 2025 totaled 1,578.7 billion yuan, reflecting a year-on-year decline of 7.7%[10] - For the entire year, ABN issuance reached 5,680.8 billion yuan, an increase of 8.4% compared to 2024[10] Corporate ABS Highlights - Corporate ABS issuance in Q4 2025 reached 4,292.5 billion yuan, with a year-on-year growth of 9.6%, achieving the highest quarterly issuance since 2022[10] - The top four product types in Corporate ABS accounted for over 60% of the total issuance for the year[10] Secondary Market Activity - The total transaction amount in the secondary market for asset securitization in Q4 2025 was 4,769.1 billion yuan, a year-on-year increase of 10.8%[13] - The turnover rate for Credit ABS in Q4 was 9.2%, indicating a significant increase in market activity compared to the beginning of the year[13] Credit Enhancement Levels - The number of outstanding priority securities for Credit ABS increased in Q4 2025, with RMBS showing a stable distribution of credit enhancement levels primarily between 2%-6%[16] - No negative anomalies were observed in the credit enhancement levels for outstanding securities during the quarter[16] Future Outlook - New guidelines from the People's Bank of China regarding small loan companies may impact ABS financing, potentially leading to lower loan rates and tighter credit risk preferences[17]

Core Insights - The asset securitization market in China is experiencing steady growth, with a total issuance of 2,435 products amounting to RMB 23,250.45 billion in 2025, reflecting a 15% increase in the number of issuances and a 14% increase in issuance scale compared to 2024 [4][11] Group 1: Market Overview - In 2025, the credit ABS market saw 238 new products issued, a 24% increase year-on-year, with a total issuance of RMB 2,915 billion, marking an 8% increase in scale [6][11] - The corporate ABS segment led the market with 1,560 new products and an issuance scale of RMB 14,133 billion, showing increases of 18% in quantity and 20% in amount year-on-year [6][11] - The ABN market issued 612 new products, with a 7% increase in quantity and a 9% increase in scale, totaling RMB 5,731 billion [6][11] Group 2: Asset Class Breakdown - The top three asset classes driving the ABS market in 2025 were financing lease receivables (349 products, RMB 3,583.05 billion), bank/internet consumer loans (388 products, RMB 3,138.84 billion), and corporate receivables (337 products, RMB 3,112.43 billion) [8][11] - Consumer loan ABS emerged as a significant growth point, driven by policies supporting consumer finance, leading to the highest issuance quantity among all asset categories [11][12] Group 3: Regulatory Environment - In 2025, various regulatory bodies, including the China Securities Regulatory Commission and the People's Bank of China, issued notifications and guidelines impacting the asset securitization market, indicating a proactive regulatory approach [3][12] Group 4: Key Players and Rankings - In the credit ABS sector, the top issuer was Jianxin Trust with 54 projects totaling RMB 1,043.98 billion, followed by Huaneng Guicheng Trust with 52 projects totaling RMB 324.28 billion [13] - The leading initiator in credit ABS was Ping An Bank, with 23 projects totaling RMB 42.96 billion [14] - KPMG was the top accounting advisor for credit ABS, participating in 105 projects with a total issuance of RMB 1,525.81 billion, accounting for over 52% of the total [15] Group 5: Market Trends and Innovations - The market is transitioning from mere scale expansion to structural optimization and high-quality development, with a focus on innovative financial products that align with national strategies [12][22] - A series of "first-of-its-kind" products emerged in 2025, reflecting the market's adaptability to national strategic directions and the need for financial product innovation [21][22]

Core Insights - The ABS market in 2025 showed a robust issuance trend, with a total of 2,435 new projects and an issuance scale of 23,250 billion yuan, representing a 14% increase compared to the previous year (20,417 billion yuan) [1][6]. Segment Summaries Credit ABS - A total of 238 new projects were issued, with a total amount of 2,915 billion yuan, marking an 8% year-on-year increase. The largest asset class was personal auto loans, with 32 issuances totaling 1,185 billion yuan, followed by non-performing loans with 178 issuances totaling 821 billion yuan [2][9]. Corporate ABS - The corporate ABS segment saw 1,560 issuances, totaling 14,133 billion yuan, which is a 20% increase year-on-year. The largest issuance was in financing lease receivables, with 295 projects totaling 2,891 billion yuan, followed by corporate receivables with 246 projects totaling 2,308 billion yuan [2][12]. Asset-Backed Notes (ABN) - The ABN market had 612 issuances, with a total amount of 5,731 billion yuan, reflecting a 9% year-on-year increase. The main types of issuances were bank/internet consumer loans (191 projects, 1,685 billion yuan) and general small loan receivables (141 projects, 1,295 billion yuan) [2][15]. Market Size and Composition - As of 2025, the cumulative market size reached approximately 35,832 billion yuan, with credit ABS at 4,339 billion yuan, corporate ABS at 22,808 billion yuan, ABN at 6,535 billion yuan, and public REITs at 2,150 billion yuan [4]. Underwriting Performance - In the underwriting rankings for 2025, CITIC Securities led with 527 projects and a total underwriting amount of 2,809 billion yuan, followed by Guotai Junan with 464 projects totaling 2,329.1 billion yuan, and Ping An Securities with 287 projects totaling 1,749.6 billion yuan [17][19]. Detailed Underwriting Rankings - For credit ABS, CITIC Securities topped the list with 109 projects and 538.5 billion yuan, followed by China Merchants Securities with 120 projects and 445.4 billion yuan [23][25]. - In the corporate ABS segment, CITIC Securities also ranked first with 308 projects and 1,853.5 billion yuan, while Ping An Securities followed with 257 projects totaling 1,693.3 billion yuan [28][30]. Asset Class Rankings - The top three asset classes by issuance volume in 2025 were financing lease receivables, bank/internet consumer loans, and corporate receivables [33]. - In the financing lease category, Ping An Securities led with 614 billion yuan, followed closely by Guotai Junan and CITIC Securities [34]. - For bank/internet consumer loans, China Merchants Securities topped the rankings with 502.6 billion yuan, followed by Huatai Securities and CICC [39]. Public REITs - In the public REITs market, the original rights holders' rankings showed Runze Technology Development at the top with 45 billion yuan, followed by Beijing Shou Nong Information Industry and Suning Commercial Group [55][56]. - The plan managers' rankings for public REITs were led by CITIC Securities with 127.9 billion yuan, followed by Southern Capital Management and CICC [58][59].

Core Viewpoint - The ABS market in 2025 showed a robust issuance trend, with a total of 2,435 new projects and an issuance scale of 23,250 billion yuan, representing a 14% increase compared to the previous year [1][7]. Segment Summaries Credit ABS - A total of 238 new projects were issued, with an issuance amount of 2,915 billion yuan, reflecting an 8% year-on-year growth. The largest asset class was personal auto loans, with 32 issuances totaling 1,185 billion yuan, followed by non-performing loans with 178 issuances totaling 821 billion yuan [2][8]. Corporate ABS - The corporate ABS segment saw 1,560 issuances, amounting to 14,133 billion yuan, which is a 20% increase year-on-year. The largest issuance was in financing lease receivables, with 295 projects totaling 2,891 billion yuan, followed by corporate receivables with 246 projects totaling 2,308 billion yuan [2][9]. Asset-Backed Notes (ABN) - The ABN market had 612 issuances, totaling 5,731 billion yuan, marking a 9% year-on-year increase. The primary issuances were in bank/internet consumer loans with 191 projects totaling 1,685 billion yuan, and general small loan receivables with 141 projects totaling 1,295 billion yuan [2][13]. Market Size and Growth - As of the end of 2025, the cumulative market size reached approximately 35,832 billion yuan, with credit ABS at 4,339 billion yuan, corporate ABS at 22,808 billion yuan, ABN at 6,535 billion yuan, and public REITs at 2,150 billion yuan [4]. Underwriting Rankings - In the corporate ABS underwriting rankings, CITIC Securities maintained the top position with 308 projects and a total underwriting amount of 1,853.5 billion yuan, followed by Ping An Securities with 257 projects totaling 1,693.3 billion yuan [16][18]. Original Rights Holder Rankings - In the corporate ABS market, China Railway Capital ranked first with 545.9 billion yuan, followed by China Foreign Trade Trust with 517.6 billion yuan [20][21]. Public REITs Market - In the public REITs market, CITIC Securities led with 127.9 billion yuan from 8 projects, followed by Southern Capital Management with 101.9 billion yuan from 3 projects [28][29].

Core Insights - The report highlights that ABN products currently do not exhibit significant premium compared to other asset-backed securities, but they still maintain a yield spread advantage over certain ordinary credit bonds, making them a viable option for enhancing returns in a market with scarce high-yield assets [2] - ABN products generally experience lower valuation volatility than ordinary credit bonds, providing a degree of resilience against overall industry shocks, which can help optimize the stability of investment portfolios [2] Market Overview - The A-share market showed a trend of initial decline followed by recovery, with major indices experiencing a slight increase in trading volume compared to the previous week. The net inflow of funds into equity ETFs reached 55.353 billion yuan, with large-cap thematic ETFs being the primary direction for net inflows [3] - Following the Central Economic Work Conference in December, market trading sentiment has improved, and the funding environment has shown continuous improvement, laying a foundation for further market upward movement [3] Market Data Summary - The closing values and percentage changes for major indices are as follows: - Shanghai Composite Index: 3919.98 (+0.07%) - CSI 300: 4620.73 (+0.20%) - Shenzhen Component Index: 13368.99 (+0.27%) - Small and Medium-sized Enterprises Index: 8111.91 (+0.35%) - ChiNext Index: 3205.01 (+0.41%) [4] - In the futures market, the closing values for stock index futures showed positive changes, with IF2601 at 4591.20 (+0.89%) [4] - Commodity market data indicates that gold closed at 1014.24 (+1.34%) and crude oil at 2483 (+1.02%), while copper and zinc experienced slight declines [4] Valuation and Rating System - The report outlines a rating system for companies and industries, categorizing them into five levels: Buy, Accumulate, Neutral, Reduce, and Sell, based on expected investment returns relative to market benchmarks over the next 6-12 months [5]

Core Insights - The interbank asset securitization market in China is entering a new stage of high-quality development driven by both policy guidance and market forces [1] - The market structure is continuously optimizing, with product innovation progressing in an orderly manner, enhancing the ability to serve the real economy [1] Market Structure and Product Innovation - As of October 2025, the outstanding balance of credit ABS in the interbank market reached 407.106 billion yuan, accounting for 11.90% of the overall securitization market [1] - From January to October 2025, the issuance scale of credit ABS was 220.953 billion yuan, with 182 issuances, representing a year-on-year increase of 30% [1] - Normal ABS projects accounted for approximately 70% of the total issuance, with auto loan ABS being the highest at 711.13 million yuan, followed by consumer loan ABS at 280.88 million yuan, and micro ABS at 576.15 million yuan [1] Policy Support and Market Response - Strong policy guidance has provided solid support for the healthy development of the interbank market, with various participating institutions actively responding [2] - Recent favorable policies include the guidance from six departments, which emphasizes the expansion of retail loan asset securitization [2] - State-owned banks and joint-stock banks have been particularly active, with state-owned banks accounting for 30.77% of the number of issuances and 40.24% of the scale from January to October 2025 [2] Future Market Outlook - The market for credit asset securitization is expected to enter a normalized development phase, which is significant for building a multi-layered financial market [3] - The asset securitization market in China has substantial growth potential compared to mature markets like the U.S., where the annual issuance of asset securitization products accounts for about 20% of the bond market [4] - The "14th Five-Year Plan" suggests steady development of asset securitization as a key measure for building a strong financial nation, indicating further growth in small and diversified asset types [4] Key Development Directions - Enhancing product liquidity is seen as a critical direction for future market development, with suggestions to promote the issuance of normal class products and improve pricing mechanisms [5] - The integration of innovative asset categories such as green finance and affordable housing, along with digital technology, will be key drivers for the future development of the industry [4][5]

Summary of ABS Market Analysis Industry Overview - The Chinese ABS market is divided into interbank and exchange markets, with credit ABS previously dominant, now followed by the rise of exchange ABS and ABN. [1][7] - Currently, enterprise products dominate the market, influenced by macroeconomic factors and real estate, leading to an overall decline in scale. However, consumer finance products are performing strongly, with an annual issuance of approximately 2 trillion RMB and a total stock of about 3.5 trillion RMB. [1][7] Key Insights and Arguments - **Growth Areas**: - General consumer finance ABS is expected to become a growth segment, benefiting from policies aimed at expanding domestic demand and promoting consumption. [1][10] - Accounts receivable/supply chain finance ABS are expanding into emerging fields such as new energy, data, and overseas supply chain notes. [1][10] - Leasing ABS activity is increasing with new entities emerging, while city investment assets are decreasing in supply. [1][10] - Non-performing ABS is growing rapidly, primarily driven by banks' off-balance-sheet needs, and is expected to continue increasing in the short to medium term. [1][10] - **Market Dynamics**: - The ABS market is transitioning from a phase of rapid growth to one of high-quality development, with limited growth in CNBS but active participation from city investment entities. [2][7] - The liquidity of ABS has improved, attributed to the stability of products and the expansion of trading investors, although monthly turnover rates remain lower than traditional bonds. [12][13] - **Investment Opportunities**: - Current investment opportunities in the ABS market include basis spreads in general consumer finance, term spreads in leasing and fee income rights, seasonal premiums, new issuance premiums, and discounts from bundled sales rules. [19][21] Important but Overlooked Content - **Risk and Return Characteristics**: - Different types of ABS products have unique risk-return profiles, and investors should assess them based on specific circumstances. [21][22] - Retail ABS performance shows a divergence, with lower default rates in mortgage and auto loans compared to higher rates in consumer loans and microloans, yet small diversified assets remain stable. [15][22] - **Challenges**: - The ABS market faces challenges such as valuation pricing difficulties and trading complexities. Investors need to conduct in-depth research on cash flow models and underlying asset performance. [21][22] - **Investor Preferences**: - The main investors in ABS include banks, public funds, bank wealth management, and insurance companies, each with different preferences based on their investment strategies and risk appetites. [24][22] This summary encapsulates the key points from the ABS market analysis, highlighting the current state, growth opportunities, and challenges within the industry.

Core Insights - The issuance scale of corporate Asset-Backed Securities (ABS) has exceeded 1 trillion yuan in 2023, reaching 10,321 billion yuan by the end of September, marking a year-on-year increase of over 20% [1][8] - This level is approaching the total issuance scale for the entire year of 2024, which is projected to be 12,483 billion yuan, and represents the first time since 2022 that the number of corporate ABS issued has surpassed 1,000 in September [1][8] Issuance Trends - A total of 1,142 corporate ABS have been issued as of September 2023, with significant growth in large-scale issuances, particularly those exceeding 2 billion yuan, which have seen a year-on-year increase of 17.65% [1][5] - The largest single issuance this year is the "CITIC Financial Asset Yunfan Phase 1" plan, with a scale of 10.01 billion yuan, achieving the lowest cost and narrowest spread among similar products [6][8] Types of ABS - Corporate ABS is primarily issued by non-financial enterprises and is regulated by the China Securities Regulatory Commission, while credit ABS is issued by financial institutions and circulates mainly in the interbank market [5][8] - Traditional underlying assets for ABS include accounts receivable, lease rentals, trust loan rights, small loans, and consumer loans, with over 800 products issued in these categories, accounting for more than 70% of total corporate ABS issuance [6][8] Innovation in ABS - New types of ABS based on data assets, intellectual property, and low-altitude economy have emerged, with the recent issuance of the "Huaxin-Xinxin Data Asset Phase 1" plan marking a significant development in data asset securitization [7][8] - Data asset ABS allows companies to convert dormant data resources into financing, particularly benefiting technology firms with insufficient collateral [7][8] Market Dynamics - The ABS market is experiencing a surge in both issuance and secondary market activity, driven by strong demand from small and medium-sized enterprises seeking to optimize their financing structures [8][9] - Regulatory support and the introduction of new fundraising mechanisms are expected to further expand the ABS market [8][10] Investor Participation - Institutional investors, including trust institutions and banks, are the primary participants in the ABS market, with trust institutions increasing their holdings significantly [10][11] - Public funds have also begun to increase their ABS holdings, with a notable rise in the number of funds participating [11][12] Yield and Risk - ABS products typically offer higher yields compared to standard bonds, with the average coupon rates for different tiers of ABS varying significantly, reflecting the risk-return profile of the underlying assets [14][16] - The current low-interest-rate environment has made ABS an attractive investment option for institutional investors, providing a unique opportunity for yield enhancement [14][16]