Legislation roundup: Asset securitisation, renminbi bonds and privately raised securities
March 15, 2013 | BY
clpstaff &clp articles &The CSRC has issued Draft Provisions over asset securitisation and Tentative Measures for the privately raised securities investment fund business, while the NDRC has produced a model outline for offering renminbi-denominated bonds in Hong Kong
Asset securitisation
China Securities Regulatory Commission, Provisions for the Administration of Asset Securitisation of Securities Companies (Draft for Comments)
The Draft proposes that the actual offering size of a publicly offered asset-backed security should be at least Rmb50 million ($8 million) and have a credit rating of at least AA from two rating agencies. Privately offered asset-backed securities may be offered to institutional investors and qualified individual investors totalling no more than 200 participants.
Asset-backed securities may be traded on stock exchanges, the quoting and transfer system among member institutions of the Securities Association of China and the over-the-counter market of securities companies.
Further reading
PRC Securities Law (Amended), Feb 2006
Renminbi bonds in Hong Kong
National Development and Reform Commission, Model Outline for the Written Application for Offering Renminbi-denominated Bonds in the Hong Kong Special Administrative Region by Non-financial Institutions in China
The Model Outline is divided into four parts detailing items to be included in an application for offering of Renminbi bonds in Hong Kong by non-financial institutions in China:
- Particulars of the issuer
- Necessity and feasibility analysis of the bond offering
- Bond offering proposal (e.g. use of proceeds and repayment security measures)
- Bond offering plan (e.g. offering timetable)
See the digest for more details.
Further reading
Investment funds
China Securities Regulatory Commission, Tentative Measures for the Administration of the Privately Raised Securities Investment Fund Business (Draft for Comments)
According to the Draft, managers of privately raised securities investment funds should have paid-in capital of at least Rmb10 million. A single private fund should be offered to qualified investors (such as an individual with average annual income of at least Rmb200,000 in the past three years) numbering not more than 200 participants. The amount invested in a single private fund by a qualified investor may not be less than Rmb1 million.
See the digest for more details.
Further reading
PRC Securities Investment Fund Law (Revised), Mar/Apr 2013
Private funds finally given regulatory system, Mar/Apr 2013
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