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To further exert the function of asset-backed securities in serving the real economy and strengthen the protection of investors' rights and interests, the Shanghai Stock Exchange today issues the Shanghai Stock Exchange Asset-backed Securities Business Rules (Draft for Comments) (hereinafter referred to as the "Business Rules") to solicit public comments.
In recent years, under the guidance of the China Securities Regulatory Commission, the SSE has practiced the principle of "building the system, non-intervention and zero tolerance", and actively played the function of ABS market. By the end of October 2022, SSE has issued a total of RMB5.37 trillion in asset-backed securities with an outstanding amount of RMB1.35 trillion, playing an important role in supporting the revitalization of existing assets, reducing corporate leverage, broadening financing channels, and supporting supply-side reform. To adapt to the new development stage of asset securitization business and market demand, SSE adheres to the principle of "true sale & bankruptcy remote", based on actual problems and daily regulatory practice, revises the Shanghai Stock Exchange Asset Securitization Business Guidelines, and changes its name to the Shanghai Stock Exchange Asset Backed Securities Business Rules.
The revision involves listing conditions and confirmation procedures, issuance and transfer, information disclosure, protection of investors' rights and interests, suspension and termination of trading and self-regulatory supervision. The revision mainly covers the following aspects: first, to focus on the characteristics of asset-backed securities, highlight asset credit, refine the requirements for listing conditions such as underlying assets and cash flow forecasts, and build an institutional mechanism that conforms to the development law of the asset securitization market; second, to clarify the procedures for confirming listing conditions, strengthen integrity risk prevention, enhance the restraint and supervision of the confirmation of listing conditions, and improve the degree of standardization and transparency; third, to standardize the information disclosure arrangements of the whole chain, strengthen the protection of investors' rights and interests, add a meeting system for holders, improve risk management responsibilities of business participants, and guide market institutions to return to their positions and responsibilities; fourth, to optimize the issuance and listing procedures, improve the supervision of suspension and resumption of trading, simplify the listing application documents, and increase listing efficiency.
In the next step, SSE will do a good job in collecting, evaluating and absorbing relevant feedback, issue and implement the Business Rules as soon as possible, establish an open, transparent and predictable institutional mechanism, and build a "1+5+N" (1 basic business rule + 5 business guidelines + N business guidance) asset-backed securities rule system. The exchange will make rules easy-to-understand and enhance market entities' sense of gain to stimulate the vitality of market innovation and development and promote the high-quality development of the bond market, so as to enhance the quality and efficiency of serving the national strategy and the real economy.
