Bangkok--6 Sep--Moody's Investors Moody's Investors Service says that the structured finance market for Greater China -- the Mainland, Taiwan and Hong Kong -- showed mixed trends during 1H07. "In China itself, there were no deals, although some potential is apparent for 2H07," says Dominique Gribot-Carroz, a Moody's AVP in Hong Kong, and author of a new report jointly written with Moody's affiliate in China -- CCXI -- which reviews 1H07 and examines the outlook for 2H07. "Applications have started on the Mainland for a second round of pilot domestic securitizations, but so far issuance has failed due to upward interest rate moves," adds Gribot-Carroz. Subsequent deals are subject to market conditions. "Meanwhile, although cross-border deals were absent, they are possible in 2H07 and will most likely take the form of CMBS, including some adjustments to the property-holding structure and changes in the relevant security package," says Gribot-Carroz. In Taiwan, during 1H07, issuance fell 18% from a year ago and was dominated by CBO. Six transactions closed and total issuance was NTD65 billion (USD 2.0 billion). On the other hand, looking ahead, demand for Taiwanese CBO could decrease due to the relaxation of the overseas investment cap from 35% to 45% for life insurers. These factors may negatively impact future CBO issuance. In Hong Kong, securitization activity has been poor due to the abundance of liquidity in the capital market, although some RMBS deals may appear in 2H07. The China, Hong Kong and Taiwan report is being released in conjunction with structured finance reports for Korea and India, a combined report for Singapore, Malaysia, Thailand and Indonesia, a report summarizing developments in the entire region, and another on regional derivatives.