CHINA: SSE Revises its Guidelines on the Underlying Assets of ABS

Wednesday August 5 2026

On 24^th July 2026, the Shanghai Stock Exchange (SSE) revised and released the “Shanghai Stock Exchange Asset-Backed Securities Listing Condition Confirmation Rules No. 2—Major Underlying Assets (2026 Revision)”.

The newly added chapter on real estate will help build a multi-tiered real estate securitization market.

This revision of the “Guidelines on Major Categories of Underlying Assets” standardizes the access criteria and information disclosure requirements for real estate underlying assets in a dedicated chapter. The main revisions are as follows:

1. a new chapter on real estate underlying assets is added, filling the gap in the guidelines regarding this type of underlying asset, clarifying the definition and asset types of real estate underlying assets, and standardizing access requirements for real estate project control, asset restructuring, and state-owned asset transfer.
2. a new chapter on special provisions for inter-institutional REITs is added, explicitly naming real estate ABS with equity attributes as inter-institutional REITs (formerly holding-type real estate ABS) from an institutional perspective, clarifying its equity product positioning and requirements.

Improve key points for major basic asset categories, emphasizing asset credit and strict entry control

Based on review practices, policy guidance, and market concerns, this revision of the “Guidelines for Major Underlying Assets” optimizes and adjusts some original provisions. The main revision points are:

1. Strict control over the entry of factoring receivables ABS, clarifying that the source of funds for factoring companies paying factoring payments must not be advanced by debtors, and reinforcing the company’s due diligence duties for verifying the authenticity of accounts receivable deposited into the pool and compliance of transaction contracts; Refine the review requirements for trade-related accounts receivable.
2. Emphasize asset credit, raise asset quality requirements, and enforce managers’ and intermediary institutions’ verification requirements for the independence of cash flows of underlying assets and the fairness of related-party transactions, to prevent the risk of cash flow mixing.
3. Based on review practice, supplement key points for each type of underlying asset, such as clarifying financial leasing entry standards, requiring leased items not to include consumer goods or low-value consumables, and strengthening verification of the disposal of leased items.

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