Lately, the Shenzhen Stock Exchange ("SZSE") has formulated and issued the Guide to the Confirmation of Listing Conditions for Asset-backed Securities for Public-Private-Partnership (PPP) Projects (the "Guide") and the Guide to Information Disclosure for Asset-backed Securities for Public-Private-Partnership (PPP) Projects, both of which shall take effect immediately from the issue date.
The Guide clearly specifies that a social investor intending to securitize its usufruct over a PPP project as the underlying asset should meet other nine special requirements, one of which reads that "the expiration date of the contract for a PPP project should not be earlier than the latest date when asset-backed securities become due", in addition to general requirements on eligible underlying assets. Additionally, the Guide provides that where a social investor plans to securitize assets of a PPP project as the underlying assets, it is required to satisfy, other than the above-said requirements, four more requirements, one of which states that "the PPP project has been completed and put into operation"; if equities of a PPP project company are to be securitized as the underlying assets, another six requirements, including "the PPP project has been completed", should be fulfilled. Furthermore, the Guide provides for special requirements on original creditors, projects to be encouraged and given priority, and other content.