Lately, the Shanghai Stock Exchange ("SSE") and the Shenzhen Stock Exchange ("SZSE") have respectively issued a Circular on Promoting Asset-backed Securitization ("ABS") Business to Public-Private-Partnership (PPP) Projects in the Field of Traditional Infrastructure (the "Circular").
The Circular states that the SSE and SZSE encourage and support enterprises and related agencies engaging in PPP projects to do ABS business for PPP projects in an active manner according to law; and all related parties shall fulfill duties earnestly in respect of due diligence investigation, information disclosure, cash flow concentration, income distribution, risk prevention and control and others. The Circular requires SSE and SZSE to set up a working group for ABS of PPP projects, designate persons specifically for implementing this work, and establish a green channel for ABS products of qualifying and high-grade PPP projects, so as to improve efficiency in accepting cases, conducting reviews and listing and transferring. Furthermore, the Circular clearly states that any project during the phase of project application will be examined upon its submission, and feedbacks will be provided within five working days after the date of its acceptance; the manager will hold a working group meeting within three working days after submitting the acknowledgement of such feedbacks, to determine whether listing requirements are satisfied.