ICBC has successfully distributed “Gong Yuan Non-performing Asset-backed Securities of 2016 (First Tranche)” in the Chinese inter-bank market, which is the first NPA securitization product initiated by ICBC after China’s first NPAS pilots were launched. The issue has a size of RMB 1.077 billion, and is separated into preferred and secondary levels. All securities were oversubscribed.

These securities are the first corporate loan NPAS product that attracts various types of investors. In addition to four major asset management companies, other investors such as securities, listed and fund companies also participated in the investment in the secondary securities, further expanding the scope of NPA investors.

Insiders said that, NPAS product, as an innovative financial instrument for NPA disposal, will help commercial banks to expand new channels in disposing of NPA, promote market-based pricing of NPA, revitalize low-efficiency assets and improve asset quality.