A blueprint for Chinese securitization

Author: | Published: 1 Jul 2005

On April 20 2005, following years of market speculation and debate among Chinese regulators, the People's Bank of China (PBOC) and the China Banking Regulatory Commission (CBRC) jointly promulgated the Administrative Measures of Pilot Projects of Credit Assets Securitization.

The measures apply to activities that fall under the responsibility of PBOC and CBRC and provide a blueprint for the securitization of credit assets by means of a specially established special purpose trust (SPT). The package of measures identifies the basic procedures relating to the issuance and trading of securities on the Chinese National Interbank Bond Market (NIBBM). They clarify the roles of the entities involved in securitization transactions and outline the trustee's ongoing disclosure requirements, delineate the rights of holders of the securities and the basic requirements for the investors' meetings. Moreover, the measures list the requirements for the preparation of the prospectus relating to the issuance of securities.