China's total structured finance issuance will hit 2.3 trillion yuan in 2026, remaining at the same level as the past year, according to a recent release.

Differing trends among asset classes add uncertainty to total new issuance, the rating agency said.

Segments such as quasi-REITs, infrastructure REITs, and auto loan ABS will see greater issuance volumes, S&P said.

Meanwhile, weaker performance could occur in consumer loan ABS from licensed consumer finance companies as well as residential mortgage-backed securities (RMBS), according to the rating agency.

S&P's total issuance forecast considers each sector's fundamentals, such as local government finance vehicles' further use of securitization for deleveraging and financing.

The expectation also reflects reduced competition from banks in the auto loan segment, regulatory shifts for consumer loan ABS issuance, and forecasts for China's consumption, light vehicle sales, and residential property markets.