China Development Bank on Thursday issued 4.18 billion yuan-worth (about US$520 million) of assets-backed securities through the country's inter-bank market, the bank said in a statement.

The securitization of credit assets means selling banks' assets with low liquidity and expected revenues through issuing securities. Originating in the United States in the 1970s, it has become a major financial instrument in modern finance.

CDB, one of China's three policy banks, obtained a go-ahead last February to securitize its loan assets, largely covering electric power plants, railways, highways, airports and other infrastructure. The bank said it chose "quality assets" for Thursday's securities insurance.

(Xinhua News Agency December 16, 2005)