Focus on credit asset quality

A change in venue does not alter a credit asset trade, so for a better return investors should instead stay focused on the quality of the asset itself.

On September 20, the Beijing Financial Assets Exchange (BFAE) issued the country's first regulations on the credit asset trading market. These are aimed at and available only to those who are directly selling or purchasing credit assets over the BFAE. The first batch of participants included are mostly state-owned financial institutions.

Credit asset trading transactions used to be scattered across different equity exchange markets in China or conducted through a public bidding process. Commentators say the establishment of a credit asset platform on the BFAE reflects the government's aim to centralise all like activities to one venue.