The Shanghai Stock Exchange ("SSE") has recently prepared and issued the Circular on Working Effectively on the Submission of Credit Risk Management Reports for Asset-backed Securities for the First Half of 2019 (the "Circular").
The Circular clearly states that all managers shall submit credit risk management reports for asset-backed securities (ABS) for the first half of 2019 by May 31, 2019, adding that the scope of ABS covered by the reports should include all ABS listed on the SSE as of the end of April 2019. Further, the Circular notes that each manager shall, by reference to the periodical reports on ABS in 2019, analyze, monitor and prevent the credit risks, and remain risk-oriented and focus on expounding on ABS that involves defaults, is exposed to risks or needs to be closely watched, and on risk items over the ABS of which the risk category has been materially degraded following the most recent reporting period, the basis of its classification, and what efforts at risk management have been made. Furthermore, the Circular requires that reports to be submitted this time shall still be prepared and generated via the SSE's announcement preparation software.