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Recently, under the coordinated guidance of the China Securities Regulatory Commission and the National Financial Regulatory Administration, the Shanghai Stock Exchange (SSE) issued a letter of no objection to the first batch of five insurance asset management companies, namely China Life Asset Management Company Limited, Taikang Asset Management Co., Ltd., CPIC Asset Management Co., Ltd, PICC Asset Management Company Limited, and Ping An Asset Management Co., Ltd, allowing them to conduct Asset-Backed Securities (ABS) and Real Estate Investment Trusts (REITs) businesses on a trial basis.
The participation of insurance asset management companies in ABS and REITs businesses is a significant measure to achieve mutual promotion and coordinated development between insurance funds and the capital market. On one hand, it will unblock the channels for high-quality infrastructure assets to enter the market, enrich ABS and REITs product offerings, promote the virtuous cycle of existing assets and new investments, and further improve the quality and efficiency of bond market's services for the real economy. On the other hand, it will fully leverage the rich investment, management, and operating experience of insurance asset management companies in the field of infrastructure, so as to promote positive interaction between the capital market and insurance funds, jointly advance the construction of a multi-level REITs market, and build a healthy market ecology.
Going forward, adhering to the principle of simultaneously emphasizing development and compliance, the SSE will collaborate with relevant parties to uphold systematic thinking, market-oriented concepts and trail basis, gradually attract more high-quality entities to participate in the ABS and REITs markets, focus on revitalizing high-quality assets, and better serve the building of a new development pattern and high-quality economic development.
