Shenzhen Stock Exchange revised and released guidelines on key points of attention for the audit of Asset-Backed Securities (ABS), continuously strengthening the institutional foundation for market development.

On July 24, the Shenzhen Stock Exchange issued the "Guidelines for Reviewing the Listing Conditions of Asset-backed Securities on the Shenzhen Stock Exchange No. 2 - Focus on Key Issues for Attention", focusing on the difficulties and pain points in revitalizing existing assets in the real estate sector, strengthening the asset-backed securities rule system, and strengthening the asset quality defense line from the source to promote market standard and healthy development. This revision combines the latest industry regulatory policies and business practices to streamline and improve the guidelines, filling institutional loopholes. Firstly, a new chapter on real estate basic assets is established to promote standardized product development. Clarify the compliance standards for real estate projects, strengthen project operations and cash flow requirements, standardize asset valuation and cash flow forecasts, and strengthen the operational management responsibilities of relevant institutions. Secondly, new specialized requirements for real estate asset-backed securities with equity attributes are added to solidify product equity attributes. Standardize the design of REITs products among institutions, further strengthen asset valuation beyond the general access requirements for real estate basic assets, and enhance operational management requirements. Thirdly, improve the focus points on debt-based basic assets, optimize cost coverage requirements for future operating income projects, unify the audit requirements for real estate assets in real estate mortgage loan projects, and achieve unified connection and precise adaptation of various asset supervision standards.