Shanghai Stock Exchange Boosts Assets Securitization

The Shanghai Stock Exchange (SSE) announced on March 26 that it decided to provide transfer service for asset-backed securities, which would be temporarily exempted from the fee related to their listing, in a bid to regulate the transfer of asset-backed securities and propel the growth of the assets securitization business.

In the relevant notice, the SSE stated that the securities companies, which apply for listing and transfer of asset-backed securities on the SSE, should submit the following documents: the listing application letter, the issuance approval document issued by the relevant regulatory authority, the certificate of the actually-raised amount of asset-backed securities, the remark document on the special plan, the legal opinion letter, the certificate of registration and custody of asset-backed securities, and others required by the SSE.

If the SSE agrees to provide transfer service for asset-backed securities, the manager of the special plan should sign the “Agreement on Transfer Service for Asset-backed Securities” with the SSE. The SSE will not make any judgment on or provide any guarantee for investment risks or incomes of asset-backed securities in its transfer service. Investors should judge and assume the investment risks concerned by themselves.

The SSE temporarily charges no fee for the listing of asset-backed securities, but it will charge handling fee for the transfer of asset-backed securities with reference to that for the corporate bonds transferred on the SSE fixed income platform.