Investment Rating - The report does not explicitly state an investment rating for the automotive leasing ABN market Core Insights - The automotive leasing ABN market in China began in 2017 and is expected to see a significant rebound in issuance scale by 2025, with characteristics such as a recovery in public trading proportion, continuous growth in green transactions, and substantial changes in the composition of initiating institutions [1][3] - The issuance rate of automotive leasing ABNs has shown a downward trend, with significant differences in the security stratification between manufacturer-related and non-manufacturer-related transactions [1][10] - The asset performance of manufacturer-related public automotive leasing ABNs has seen a dynamic overdue rate and cumulative default rate significantly higher than the car loan ABS market since 2023, primarily due to specific samples and a reduction in ongoing transactions [1][34] Summary by Sections Issuance Overview - The automotive leasing ABN market saw a significant rebound in 2025, with a total issuance of 23 transactions amounting to 45.64 billion, doubling from the previous year, although it remains the smallest among the three automotive ABS sub-markets [3][4] - The issuance scale of automotive leasing ABS also turned positive in 2025, while the car loan ABS market continued to decline, indicating a higher level of market vitality in automotive financing leasing compared to car loans [3][4] Market Characteristics - Public trading proportion has rebounded, with public transactions providing more comprehensive information disclosure, which is crucial for market research [5] - The issuance of asset-backed commercial paper (ABCP) has declined, with only 2 transactions in 2025 [5] - Green transactions have seen continuous growth, with 54.3% of automotive leasing ABN issuance in 2025 being green, significantly outpacing the automotive leasing ABS and car loan ABS markets [6] Initiating Institutions - The composition of initiating institutions has changed significantly, with a majority of non-manufacturer-related transactions being initiated by internet-backed financing leasing companies [8] - In 2025, manufacturer-related transactions accounted for 75.9% of the issuance scale, remaining stable compared to the previous year [8] Security Characteristics - The issuance rates of automotive leasing ABNs have generally followed market trends, with a notable increase in 2022, but have since shown a downward trend [10] - The average issuance rate for non-manufacturer-related transactions was 2.33%, while for manufacturer-related transactions it was 1.94% in 2025 [10] - The proportion of priority securities in manufacturer-related transactions has been significantly higher than in non-manufacturer-related transactions [12] Asset Characteristics - The average asset pool size for manufacturer-related public automotive leasing ABNs is approximately 2.83 billion, significantly smaller than that of car loan ABS [19] - The average initial loan-to-value (LTV) ratio for manufacturer-related public automotive leasing ABNs is 70.3%, which is 6.5 percentage points higher than that of car loan ABS [23] - The asset pools predominantly consist of new car leasing payments, with minimal inclusion of used car assets [25] Asset Performance - The dynamic overdue rates for manufacturer-related public automotive leasing ABNs have been significantly higher than those of car loan ABS since 2023, influenced by specific high-LTV transactions [34] - The cumulative default rates for automotive leasing ABNs have shown an upward trend, particularly for transactions issued in 2023 and 2024, largely due to a few high-risk samples [39] - The early repayment rates for automotive leasing ABNs have shown seasonal fluctuations, generally remaining higher than those of car loan ABS [42]