To further regulate the business of asset-backed securities and perfect the business rule system for asset-backed securities,SZSE released No. 2 Guidelines for Confirmation Business of Listing Conditions of Asset-backed Securities-Classification Review(hereinafter referred to as the “Classification Review Guidelines) andNo. 3 Guidelines for Confirmation Business of Listing Conditions of Asset-backed Securities-Specific Varieties(hereinafter referred to as the “Specific Varieties Guidelines”), setting out applicable standard and measures for optimization and key review of asset-backed securities, defining standard identification use and information disclosure requirements for specific varieties of asset-backed securities, further improving the review mechanism, enhancing the capabilities for direct financing in the bond market and better serving the real economy and national strategies.

The Classification Review Guidelines set forth the conditions to be met for project sponsors and underlying assets subject to optimization review. In terms of optimization measures, project sponsors are allowed to declare the same type of underlying assets subject to the shelf offering mechanism, and the validity period of financial statements is appropriately extended; in case of no material change in the re-declaration, the preparation of application documents may be appropriately simplified; in principle, SZSE completes the review of projects subject to optimization review within ten working days. Meanwhile, the Classification Review Guidelines stipulate that, in case of material adverse changes in the regions or industries of project sponsors, default, extension, major negative public opinions or material adverse changes in underlying assets and cash flow sources during the reporting period, the administrator shall fully verify relevant matters and reasonably determine the scale of financing and use of raised funds.

In conjunction with business practice, theSpecific Varieties Guidelines specify naming standards and information disclosure requirements with respect to the asset-backed securities (such as technological innovation, intellectual property right, green development and low carbon, rural revitalization, the Belt and Road and housing rental (including indemnificatory housing rental)) intended to serve specific national strategic areas, expressly supporting the declaration and listing of asset-backed securities in particular areas and encouraging institutional investors to invest in specific areas of asset-backed securities. Furthermore, the Specific Varieties Guidelines also specify that, if the originator has the ability to continue as a going concern and the credit enhancement institution has a good ability to support liquidity, the administrator may issue asset-backed securities on a rolling basis with the support of underlying assets generating continuous and stable cash flow.

In the next step, SZSE will continue to conscientiously study and implement the guiding principles of the 20th CPC National Congress and the decisions and plans made at the Central Economic Work Conference. According to the plan requirements of CSRC, SZSE will stick to the underlying principle of pursuing progress while ensuring stability, put into action the new development philosophy in a complete, accurate and comprehensive manner, constantly improve rules and mechanisms, optimize the business innovation ecosystem, further enhance the quality and efficiency of financing of asset-backed securities, channel funds to key links and areas of national strategies and continuously and deeply serve the high-quality development of the real economy.