On March 3, under the guidance of the CSRC, SZSE issued the No. 4 Guidelines of Shenzhen Stock Exchange on Confirming the Listing Conditions of Asset-backed Securities - Requirements Related to the Asset-backed Securitization by Insurance Asset Management Companies (Provisional)(hereinafter referred to as the “Business Guidelines”). TheBusiness Guidelinesexpands the scope of business entities of asset-backed securitization (ABS) and real estate investment trusts (REITs) by including insurance asset management companies that feature sound corporate governance, standardized internal control and management, and outstanding capital management capabilities. This is conducive to fully leveraging the rich investment, management and operation experience of insurance asset management companies to boost the stable and healthy development of ABS and REITs businesses and further promote the development of a multi-tiered bond market. This is another important initiative taken by SZSE to thoroughly study and practice the spirit of the 20th CPC National Congress and the Central Economic Working Conference, and earnestly implement theOpinions of the General Office of the State Council on Further Revitalizing the Existing Assets and Expanding Effective Investment.

TheBusiness Guidelinesclarifies the application requirements, application procedures, self-regulation and other key matters for insurance asset management companies to conduct ABS and REITs businesses.First,the application requirements are specified, including the corporate governance, business policy, staff structure and asset management scale of insurance asset management companies to conduct standard ABS and REITs businesses.Second,the application procedures are clarified, and the application procedure and on-site assessment are standardized.Third,the self-regulatory arrangements such as on-site inspections and the adoption of regulatory measures by the exchange are specified.

Next, in accordance with the unified deployment of the CSRC, SZSE will adhere to the principles of systematic thinking, market concept and pilot first, continuously improve the policies and mechanisms, and optimize the business innovation ecology. In addition, SZSE will actively support eligible insurance asset management companies to apply for ABS and REITs businesses to enrich the ABS and REITs market players of the exchange, and better boost the high-quality development of the exchange bond market.