Four Departments: Standardized Rules for Asset Recognition of Creditors Rights

category:Finance
 Four Departments: Standardized Rules for Asset Recognition of Creditors Rights


2. Where other creditors rights assets are recognized as standardized creditors rights assets, the following conditions shall be met at the same time:

(1) Divide equally and trade equally. Private issuance by bookkeeping, filing or tendering. During the issuance and survival period, there are two or more qualified investors, with the par value or its integer multiple as the minimum trading unit, with standardized text of the transaction contract.

(2) Full disclosure of information. Investors and issuers agree on specific arrangements for information disclosure in issuing documents, such as mode, content and frequency. The subject responsible for information disclosure ensures that information disclosure is true, accurate, complete and timely.

The issuer is obliged to pay the investor by providing cash or financial instruments, or by cash flow generated from the bankruptcy-segregated basic assets, and at least includes the issuance amount, par value, issuance price or interest rate determination method, duration, issuance method and underwriting method.

(3) Centralized registration and independent trusteeship. The bond market registration Trustees approved by the Peoples Bank of China and the financial supervision and management department shall be centrally registered and independently trusteeed.

(4) Fair pricing and perfect liquidity mechanism. We use inquiry, bilateral quotation and matching of bids to actively provide market-making and valuation services by market-making institutions and underwriters. Buyers and sellers shall first determine the transaction price according to the historical transaction price or the quotation of market makers and underwriters. If the asset has no historical transaction price or quotation, it can be evaluated by other third parties. Other third-party valuation agencies providing valuation services have a sound corporate governance structure, which can effectively deal with conflicts of interest, while ensuring the valuation quality through reasonable quality control means, and open valuation methods and valuation processes to ensure transparency of valuation.

(5) Transactions in the inter-bank market, the stock exchange market and other trading markets agreed by the State Council. Institutions providing such infrastructure services as registration, trusteeship, liquidation and settlement have been integrated into the overall supervision of infrastructure in the inter-bank and exchange bond markets. They coordinate with other infrastructure in the bond market in accordance with the principles of hierarchical, orderly, organic complementarity and diversified services. Relevant businesses follow the unified and standardized arrangements for bonds and asset-backed securities.

3. Institutions that meet the relevant requirements listed in Item 5 of Article 2 of these Rules may apply to the Peoples Bank of China for the recognition of standardized creditors rights assets. The Peoples Bank of China, in conjunction with the financial supervision and regulation department, shall make the determination in accordance with the conditions listed in Article 2 of these Rules and the relevant provisions.

4. Creditors rights assets that do not meet the requirements listed in Articles 1, 2 and 3 of these Rules are non-standardized creditors rights assets, except those formed by deposits (including large deposit receipts), reverse repurchase of bonds and interbank lending.

The direct financing tools of Banking Finance Registration Trusteeship Center Limited Company, the products related to the transfer of credit assets and income rights of Banking Credit Asset Registration and Transfer Center Limited Company, the creditors rights financing plan of Beijing Financial Asset Exchange Limited Company, the income vouchers of China Securities Inter Quotation System Limited Company, and the Shanghai Insurance Exchange Limited Company. Creditors rights investment plan, asset support plan and other financial products that do not simultaneously meet the requirements listed in Article 2 of these Rules and provide creditors rights financing for a single enterprise are non-standardized creditors rights assets.

Assets not included in the statistical scope of non-standardized creditors rights assets of the financial supervision and regulation department before the promulgation of these rules may be exempted from the regulatory requirements of the Guiding Opinions on the term matching, quota management, centralized management and information disclosure of non-standardized creditors rights assets investment during the transitional period of the Guiding Opinions. If the transitional period is still in existence after the end of the transitional period, it shall be properly handled in accordance with the relevant provisions.

5. These Rules shall come into force on the date of promulgation. If the previous relevant provisions are inconsistent with the Guiding Opinions and the relevant requirements of these Rules, the Guiding Opinions and these Rules shall prevail.

Source: Responsible Editor of the Peoples Bank of China: Zhong Qiming_NF5619