PRC securitization : legal and rating developments
The Securitisation & Structured Finance Handbook 2018
The 1997 Asian financial crisis demonstrated how excessive concentration of credit and liquidity in the banking sector made economies vulnerable to systemic economic collapse. The Asian financial crisis saw many Asian currencies attacked and suffer significant de-valuation. The People’s Republic of China (China or PRC) was relatively insulated from that 1997 Asian financial crisis because of one key reason – its strict exchange controls of the local CNY currency. On the other hand, the 2008 global financial crisis demonstrated the risks of China’s over-reliance on the US dollar as its reserve currency, and the limitations of CNY remaining a controlled currency.
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ISBN of the source publication: 9780995479159
Ong, K. & Ho, H. M. S. (2017). PRC securitization: Legal and rating developments. In L. Paul (Ed.), The Securitisation & Structured Finance Handbook 2018 (pp. 44- 50). United Kingdom: Adrian Hornbrook.