Securitisation deals backed by consumer loans — most of which were disbursed through online channels — soared to Rmb270bn last year from Rmb73bn in 2016, according to data from Wind Information, the financial data provider. The increase occurred despite a terrible year for China’s overall bond market as yields rose and overall issuance slumped. The Shanghai stock exchange, where many of the securitised loans trade, is reportedly drafting new rules that would tighten standards for consumer-loan securitisation. Among the new rules under consideration is forbidding securitisations backed by so-called “cash loans” where the use of funds is undefined.

https://www.ft.com/content/038f750c-1641-11e8-9376-4a6390addb44