Capital Markets Research

The US Federal Reserve (Fed) announcement that it will continue the program of quantitative easing (QE) boosted the Asian stock market, but many now worry that this is only a temporary fix.

China initiated its asset securitization program in 2005 for securities companies. However, after the subprime mortgage crisis swept over the globe, regulators in China temporarily stopped the program because although it provides liquidity to markets, securitization also comes with significant risks. In 2012, the asset securitization program was initiated once…