China Merchants Bank Co. Ltd. (03968.HK, 600036.CN) is launching credit asset-backed securities products estimated to be worth 15.39 billion yuan (US$2.47 billion), China Business News reported Friday. The first of such products, set for launch Friday, is linked to accounts receivable of its credit card customers, the first of its kind in China, and estimated to be worth 8.11 billion yuan. As of the end of 2013, the combined credit limit of credit cards in circulation nationwide was 4.57 trillion yuan, while outstanding credit card payment was 1.84 trillion yuan. If China Merchants Bank’s new product gains traction in the market, other commercial banks are likely to follow suit, the report said.
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