Recently, the Shenzhen Stock Exchange ("SZSE") has issued the Guidelines for the Confirmation of Listing Conditions for Asset-backed Securities (the "Guidelines"), with immediate effect.
According to the Guidelines, asset-backed securities (ABS) to be listed and transferred on the SZSE shall not fall under any circumstances specified in the Negative List of Underlying Assets for Asset-backed Securities issued by the Asset Management Association of China ("AMAC") or any circumstances identified by the SZSE as inconsistent with the listing conditions. The Guidelines clearly state that the SZSE will check whether the application documents are complete and conform to certain form requirements within two trading days, upon receipt of application documents submitted by the manager for making listing conditions confirmed. Where such documents are complete, the application will be accepted; otherwise, the SZSE will notify the manager of documents to be supplemented on a one-time basis. However, the application will be rejected if it is obvious that such application does not meet the SZSE's listing conditions. Further, the Guidelines provide that if the issuer is involved in any major matter, a matter that may affect the judgement of investment values and investment decision-making, or any other important matter that should be additionally disclosed as the SZSE deems it necessary to do so, while the SZSE is checking the above-said documents, the manager and other related agencies shall inform the SZSE promptly, present written explanations on relevant matters and opinions of such agencies, and update its application documents.