BEIJING, April 3 (Reuters) - China's central bank is introducing a registration system for companies that issue asset-backed securities (ABS) to simplify the process and increase transparency in the sector.
China has cautiously encouraged greater use of ABS in recent years to provide firms with more channels to raise funds and deepen the country's financial market.
Firms selling ABS need only register with the central bank now before issuing their products. Previously, regulatory review and approval had to be sought for all such issues.
ABS sellers are also encouraged to provide financial information to the public about the assets underlying their securities, the People's Bank of China said in an online statement.
Simplifying business procedures and cutting red tape is a key plank in China's plans to reorient the world's second-biggest economy to give free markets a bigger role.
By reducing state planning, authorities hope to increase the efficiency of investment in the country.
Regulators are also planning to move the management of initial public offerings to a registration-based system that mirrors those in developed countries, aiming to let the market play a bigger role in the timing and pricing of share offerings. (Reporting by Koh Gui Qing; Editing by Alan Raybould)