Shenzhen Stock Exchange: Pilot companies' bond renewals and asset-backed securities expansion business.

On July 18th, according to the Shenzhen Stock Exchange, the Shenzhen Stock Exchange issued a notice regarding the pilot issuance of corporate bonds and the expansion of asset-backed securities issuance. Issuers can apply for issuance registration with the Exchange using the public registration documents for the issuance of corporate bonds within the validity period, or the confirmation documents for non-publicly issued corporate bonds, in order to participate in the issuance of additional bonds. If existing corporate bonds have credit enhancement mechanisms, issuers should make appropriate arrangements for any changes to the credit enhancement mechanisms before implementing the additional issuance to ensure that all bondholders have equal rights after the issuance. The original text is as follows: Notice Regarding Pilot Corporate Bond Issuance and Asset-Backed Securities Expansion Business Shenzhen Stock Exchange [2025] No. 764 To all market participants: In order to standardize the issuance of corporate bonds (including enterprise bonds, the same below) and asset-backed securities expansion activities on the Shenzhen Stock Exchange (hereinafter referred to as the Exchange), meet the reasonable financing needs of market entities, and further enhance the liquidity of the bond market, in accordance with the regulations such as the "Measures for the Management of Corporate Bond Issuance and Trading", we hereby notify the arrangements for conducting pilot corporate bond issuance and asset-backed securities expansion as follows: 1. Corporate bond issuance referred to in this notice means the incremental issuance conducted by the issuer of existing corporate bonds listed on the Exchange, and combining the incremental bonds with the existing bonds for listing. Asset-backed securities expansion referred to in this notice means that the manager plans to expand the issuance of existing held real estate asset-backed securities listed on the Exchange and merge them for listing. The expansion issuance does not involve setting up a new asset support special plan. After the combined listing, the terms of the issuer of existing corporate bonds, assets support securities regarding principal and interest repayment, income distribution, etc., and the related arrangements for protecting investor rights such as bondholder meetings, trustee management, default responsibility, and dispute resolution should generally remain unchanged. The issuer of corporate bonds and the managing entity should ensure that the original and new bondholders have equal rights and obligations in accordance with the terms of the prospectus, plan memorandum, and related agreements. 2. Issuers can apply for issuance registration with the Exchange using the public registration documents for corporate bond issuance within the validity period, or the confirmation documents for non-publicly issued corporate bonds, to participate in the issuance of additional bonds. If there are no registration documents or confirmation documents meeting the requirements, they should submit an issuance registration or confirmation application to the Exchange in accordance with relevant regulations such as the "Shenzhen Stock Exchange Rules for the Review of Corporate Bond Issuance and Listing". Specific matters related to issuance registration, listing conditions confirmation, and corporate bond issuance shall follow the provisions of the Exchange's current business rules, except as otherwise provided in this notice. 3. If existing corporate bonds have credit enhancement mechanisms, issuers should make proper arrangements for any changes to the credit enhancement mechanisms before implementing additional issuance to ensure that all bondholders have equal rights. If the additional issuance may result in significant changes to the credit enhancement mechanism or debt repayment security measures, the issuer should convene a bondholder meeting in accordance with the regulations or agreements before applying for issuance registration, review the additional issuance matters, disclose the results of the review in the application documents, and submit the bondholders meeting resolution, the consent of the credit enhancement subject to amend the credit enhancement mechanism, and other relevant documents to the Exchange. If the issuer plans to conduct multiple additional issuances on the same existing corporate bonds within twelve months, the issuer may submit the additional issuance plan for bondholder meeting approval before the first additional issuance, but should implement the arrangements for changes in credit enhancement mechanisms and debt repayment security measures in advance for all additional issuance matters. If the additional issuance may have other significant impacts on the rights of existing bondholders, the issuer should convene a bondholder meeting in accordance with the regulations or agreements before applying for issuance registration and disclose the results of the meeting in the application documents. Issuers applying for public or non-public corporate bond issuance with a clear plan for additional issuances at the time of application should disclose and submit related documents in accordance with the provisions stated above. Issuers may specify in the prospectus that subscribing to or acquiring the corporate bonds through the secondary market trading would imply consent to the issuer's arrangements for additional issuance. Lead underwriters and issuer lawyers should verify the compliance of the additional issuance and the changes in credit enhancement mechanisms and issue clear verification opinions. 4. On the first day of combined listing, the basic information of the additional issuance corporate bonds such as the security code, security abbreviation, security full name, inception date, interest payment date, maturity date, face value, coupon rate, and special terms should be consistent with the existing bonds. If the issuer needs to change the basic information of the bonds as mentioned above, they should first amend the corresponding basic information of existing bonds after convening a bondholder meeting or following other prescribed procedures, before applying for additional issuance registration. 5. Before the additional issuance of corporate bonds, the issuer and lead underwriter should submit the prospectus and other issuance registration documents to the Exchange no later than 10:00 the day before the issuance document announcement date. After completing the issuance registration, the issuer and lead underwriter should perform the pre and post-issuance disclosure obligations as required, and organize the issuance in accordance with the Exchange's business rules. 6. The issuer and lead underwriter should determine the issuance price of the additional bonds through market-based methods such as inquiry. The issuer should disclose the principles and methods used to determine the issuance price in detail in the issuance announcement. 7. The issuer should strictly use the funds raised from the additional issuance of corporate bonds as stipulated in the prospectus and relevant regulations. 8. The registration and listing process of additional corporate bonds should be submitted through a one-stop service arrangement with the Exchange and the China Securities Depository and Clearing Corporation, with the Exchange uniformly accepting the application. Specific requirements should be executed in accordance with the relevant regulations of the Exchange and the Clearing Corporation. 9. Corporate bonds meeting the conditions for basic market-making varieties after the additional issuance may be included in the range of basic market-making varieties for corporate bonds. 10. Matters related to the expansion of asset-backed securities issuance should refer to the provisions of this notice regarding the additional issuance of corporate bonds. The manager should convene a meeting of the holders to review the matters related to the expansion issuance, and submit the application for transfer and resolution of the holders' meeting to the Exchange as required. The manager and legal firm should verify the deliberations of the holders' meeting and issue clear opinions. 11. Issuers, lead underwriters, trustees, managers, legal firms, and other entities should be honest and fulfill their obligations of information disclosure in accordance with laws and regulations, the Exchange's business rules, and the provisions of this notice. Violations of the Exchange's business rules and this notice may lead to self-regulatory measures or disciplinary actions by the Exchange. 12. Matters not covered by this notice shall be executed in accordance with the relevant business rules of the Exchange. 13. This notice shall take effect from the date of issuance. Source: Shenzhen Stock Exchange official website; Translated by GMTEight; Editor: Chen Xiaoyi.