China Merchants Securities
For the third year in a row, China Merchants Securities (CMS) has stood out from the crowd in China’s residential mortgage-backed securities (RMBS) market.
Led by Zheng Qian, director of securitization, CMS has come top in RMBS underwriting every year since 2015. During this year’s awards period, CMS took second place, with 21 deals worth Rmb55.1 billion ($8.4 billion) in total, Wind data shows.
CICC ranked top as the investment bank secured underwriting mandates on some of the largest RMBS transactions. During our awards period, CICC underwrote 18 RMBS transactions worth a total of Rmb56.9 billion.
However, CMS remains the undisputed leader for China’s biggest RMBS originators, including China Construction Bank (CCB) and Industrial and Commercial Bank of China. During our awards period, CMS took part in 58.33% of the deals originated by CCB, the largest player in the market, and half of the deals originated by Bank of China. That advantage is unlikely to fade soon.
It is also focusing on improving secondary liquidity. CMS now provides two-way quotes on select RMBS transactions, addressing the enduring problem of a lack of liquidity in the domestic market.