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To effectively implement the Opinions of the General Office of the State Council on Further Revitalizing Existing Assets and Expanding Effective Investment and leverage its role of asset securitization market, the Shanghai Stock Exchange (SSE) released the Notice on Further Leveraging the Role of Asset Securitization Market to Support the Revitalization of Existing Assets (hereafter referred to as the Notice) today to help companies revitalize their existing assets and ensure an unimpeded and virtuous circle of investment and financing.
The Notice includes three parts. First, focusing on priority tasks and creating new methods of asset securitization to revitalize existing assets. The SSE should support the asset securitization of key fields, areas, and enterprises that meet the requirements, take into consideration the asset features of key fields and industries, identify the size of existing assets fit for securitization, encourage business innovation and fund raising for reinvestment, and support enterprises in securitization through PPP projects, intellectual property rights, etc. Second, highlighting assets credit and strengthening and improving the investor protection mechanism of asset securitization. The SSE should make detailed requirements of bankruptcy remote and information disclosure, guide enterprises to improve investor protection mechanism arrangements, encourage managers to specifically disclose information regarding underlying assets and company situations, improve the level of information disclosure, and facilitate the sustainable and healthy development of the market. Third, expanding financing services and optimizing and strengthening measures to support the asset securitization market. The SSE should build a specialized team and a direct channel mechanism of asset securitization to adapt to the financing needs of enterprises, help improve the structure of products, establish communication platforms, facilitate investment and financing docking, and apply optimized review procedures for qualified projects. The SSE will include relevant indicators in operation assessment, innovative operations or pilot products and other aspects and encourage managers to provide professional services concerning securitization.
Next, the SSE will follow the unified deployment of the China Securities Regulatory Commission, earnestly implement the national strategy, give play to the role of the capital market, create new methods of asset securitization to revitalize assets, widen and deepen asset securitization market services, improve the quality and efficiency of the services provided for the real economy, and promote the high-quality development of the bond market.
