Between December 13 and 17, 2007, “the Industrial Bank Xingyuan Phase 1 Mortgage-backed Securities (MBS)” was successfully being issued in the inter-bank securities market. China Foreign Economy and Trade Trust & Investment Co., Ltd (Fotic) was the issuer and trustee of the RMB 5.24 billion worth securities. December 18 saw the establishment of the Industrial Bank 2007 Xingyuan Phase 1 MBS Trust.

The MBS will be classified as “Prime MBS”, worth RMB 4.87 billion, offered to the public on placement through bookkeeping files established, and “Subprime MBS”, worth RMB 373 million, offered to selected investors.    

As a structured finance product, the MBS are regarded promising in China’s financial market, encouraged by China Securities Regulation Commission and also a key new business of Fotic.