Shanghai and Shenzhen Stock Exchanges issue asset-backed securities rules and supporting guidelines

Shanghai and Shenzhen Stock Exchanges issue asset-backed securities rules and supporting guidelines

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As the asset securitization business enters a new stage of development and the market situation undergoes new changes, the need to consolidate asset credit and bankruptcy isolation systems, strengthen investor protection, and clarify self-regulatory requirements has become increasingly prominent. To this end, the Shanghai and Shenzhen Stock Exchanges recently released the Asset-Backed Securities Business Rules (referred to as “ABS Business Rules”) and related supporting guidelines to steadily build an asset-backed securities business rules system with business rules as the core, and further enhance the bond market’s ability to serve the real economy. .

The ABS business rules released this time sort out and integrate the current business guidelines and business guidelines, combined with the basic business rules for asset-backed securities formed by regulatory practices in recent years, and systematically standardize the confirmation, issuance, listing transfer, duration management, etc. of asset-backed securities. Full cycle business. For example, it clarified the listing conditions, review procedures, basic assets and important business participants of asset-backed securities, consolidated the foundation of the access system for asset-backed securities, and stabilized market expectations; it clarified the duration management mechanism of asset-backed securities, and provided guidance on the issuance and listing of asset-backed securities. The procedures, investor suitability, transfer mechanism, information disclosure, suspension, resumption and termination of listing shall be comprehensively regulated, and supervision of the whole chain of “before + during + after the event” shall be strengthened.

In terms of supporting guidelines, the Shanghai Stock Exchange issued continuous information disclosure guidelines, which further clarified the disclosure requirements for regular reports and temporary reports of asset-backed securities, clarified the general provisions for information disclosure, annual asset management reports, annual custody reports, temporary reports of managers, holders Regarding disclosure matters such as meetings and credit rating reports, we must strictly regulate the specific requirements for information disclosure and effectively safeguard the legitimate rights and interests of investors.

The Shenzhen Stock Exchange has issued three supporting guidelines for regular reporting, interim reporting and credit risk management. Among them, two guidelines, regular reporting and temporary reporting, have further improved the timeliness, standardization and effectiveness of information disclosure in asset-backed securities business, while the credit risk management guidelines have further improved the systematic and forward-looking nature of credit risk management in asset-backed securities business. and pertinence, including consolidating the main responsibilities of important business participants, refining the risk monitoring and investigation requirements for managers, and improving credit risk response and disposal arrangements.

In recent years, the Shanghai and Shenzhen exchanges have actively exerted their functions as asset-backed securities markets and played an important role in revitalizing existing assets, reducing corporate leverage, broadening financing channels, serving the real economy, and assisting supply-side reform. As of the end of February 2024, the cumulative issuance of asset-backed securities on the Shanghai Stock Exchange is 6.58 trillion yuan, and the custody volume is 1.39 trillion yuan; as of now, the cumulative issuance scale of asset-backed securities on the Shenzhen Stock Exchange exceeds 2.49 trillion yuan, with a complete range of major basic asset types and characteristic foundations. Asset types stand out.

The Shanghai and Shenzhen Stock Exchanges stated that in the next step, they will firmly adhere to the main line of “strengthening supervision, preventing risks, and promoting high-quality development”, adhere to openness and transparency, improve the asset-backed securities rule system, guide market entities to return to their duties, and stimulate market innovation and development. We will further develop the functions of the asset securitization market and promote the high-quality development of the bond market.

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