Group 1: Core Insights - The proposal from the Central Committee emphasizes the need to steadily develop futures, derivatives, and asset securitization as essential measures for establishing a well-structured financial market system and accelerating the construction of a financial powerhouse [1] - The derivatives market in China is projected to exceed 230 trillion yuan in trading volume by 2024, highlighting the importance of derivatives in price discovery and risk management [2] - The current development of the derivatives market in China is lagging, with the daily trading volume of interest rate derivatives being only about 0.8% of the outstanding government bonds, compared to 8%-9% for USD and EUR derivatives [2] Group 2: Derivatives Market Development - To enhance the derivatives market, it is crucial to optimize regulatory approaches, allowing more qualified entities like insurance companies and banks to access derivatives, thus diversifying participants and trading scenarios [3] - Strengthening regulatory capabilities is essential to avoid systemic risks, improve transparency, and enhance regulatory effectiveness [3] - Financial institutions should develop internal management systems tailored to derivatives business characteristics, improve hedge accounting, and build talent in pricing and risk control [3] Group 3: Asset Securitization - Asset securitization plays a vital role in revitalizing existing assets, stabilizing macro leverage ratios, optimizing asset-liability structures, and broadening financing channels [4] - The asset securitization market in China has entered a normalization phase since 2014, with annual issuance reaching around 2 trillion yuan, but faces challenges such as unclear underlying legal relationships and high issuance management costs [4] - There is significant potential for asset securitization to support the real economy, particularly in infrastructure, public utilities, and advanced manufacturing sectors [5] Group 4: Future Directions - The focus should be on serving key areas of the real economy, enhancing innovation in standards, financial products, and policy guidance [5] - It is necessary to improve the legal framework and supporting arrangements for the market, ensuring clear rights and obligations among participants [5] - Diversifying investors and enhancing the secondary market's liquidity are critical for the long-term healthy development of the asset securitization market [5]

Group 1: Core Insights - The proposal from the Central Committee emphasizes the need to steadily develop futures, derivatives, and asset securitization as essential measures for establishing a well-structured financial market system and accelerating the construction of a strong financial nation [1] - The derivatives market in China is expected to exceed 230 trillion yuan in trading volume by 2024, highlighting the importance of derivatives in price discovery and risk management [2] - The current development of the derivatives market in China is lagging, with the daily trading volume of interest rate derivatives being only about 0.8% of the outstanding government bonds, compared to 8-9% for USD and EUR derivatives [2] Group 2: Derivatives Market Development - To enhance the derivatives market, it is crucial to optimize regulatory approaches, allowing more qualified entities like insurance companies and banks to engage in derivatives trading [3] - Strengthening regulatory capabilities is essential to avoid systemic risks, improve transparency, and enhance regulatory effectiveness [3] - Financial institutions should develop internal management systems tailored to derivatives business characteristics and improve talent development in pricing and risk control [3] Group 3: Asset Securitization - Asset securitization plays a vital role in revitalizing existing assets, stabilizing macro leverage ratios, optimizing asset-liability structures, and broadening financing channels [4] - The asset securitization market in China has entered a normalization phase since 2014, with annual issuance reaching around 2 trillion yuan, but faces challenges such as unclear legal relationships and high issuance costs [4][5] - To promote the long-term healthy development of the asset securitization market, it is necessary to focus on serving key sectors of the real economy and enhance the legal and regulatory framework [5]

Core Viewpoint - The successful issuance of the Guanglian Expressway Real Estate Asset-Backed Securities (ABS) project, amounting to 15 billion yuan, marks a significant milestone as the largest single issuance and the first to receive approval from policy banks, showcasing a new paradigm for infrastructure financing in the Greater Bay Area [1][5][6]. Group 1: Project Overview - The Guanglian Expressway, connecting Guangzhou and Lianzhou, spans 231.7 kilometers and is a crucial part of Guangdong's highway network, enhancing strategic connectivity within the region [3]. - The project was officially accepted by the Shanghai Stock Exchange on August 6, 2025, and received approval on October 22, 2025, with CITIC Securities acting as the plan manager [3][4]. Group 2: Market Impact - The issuance of 15 billion yuan attracted over 10 core institutional investors, including insurance funds and asset management companies, indicating strong market confidence in the underlying asset quality [4]. - The project features an innovative performance assessment mechanism and liquidity support services, which are expected to enhance trading activity and pricing efficiency in the secondary market [4][5]. Group 3: Industry Trends - The market for holding-type real estate ABS has been expanding rapidly, with a total issuance of 22 projects amounting to 50.225 billion yuan by the end of November 2023, indicating a robust growth trajectory [8][9]. - The diverse asset classes within the ABS market, including commercial properties and infrastructure, provide a wide range of investment opportunities, contributing to the market's inclusivity [8][9]. Group 4: Future Outlook - Analysts believe that the holding-type real estate ABS market has significant growth potential, supported by favorable policies and a strong supply of quality projects, which could complement existing REITs structures [9].

Core Viewpoint - The meeting of the Asset Securitization (ABS) Business Committee of the China Securities Investment Fund Industry Association emphasized the importance of ABS and multi-level REITs markets in promoting high-quality development and supporting the real economy, aligning with the "14th Five-Year Plan" [1][2] Group 1: Meeting Highlights - The meeting discussed the implementation of the spirit of the 20th National Congress and the "14th Five-Year Plan," focusing on high-quality development of ABS and multi-level REITs markets [1] - It was noted that ABS and multi-level REITs have significantly contributed to revitalizing existing assets, stabilizing macro leverage ratios, optimizing asset-liability structures, and broadening financing channels [1] - The meeting recognized the ongoing efforts to enhance the quality and efficiency of services to the real economy through ABS and REITs [1] Group 2: Strategic Recommendations - The meeting recommended aligning the development of the ABS market with national strategies, enhancing services for the real economy, and improving wealth management for residents [2] - It suggested actively optimizing the ABS market structure by focusing on sectors such as computing assets, data assets, green energy, and pension infrastructure [2] - The meeting called for strengthening the capabilities of industry institutions, exploring paths for financial technology empowerment, and improving asset transparency and risk management [2] Group 3: Regulatory Insights - Officials from the Securities Regulatory Commission highlighted the positive impact of ABS and multi-level REITs in revitalizing existing assets and supporting the capital market's service to the real economy [2] - Future regulatory efforts will focus on enhancing the adaptability and inclusiveness of the system, optimizing mechanisms related to valuation and market-making, and encouraging financial technology integration [2]

Market Overview - The U.S. asset-backed securities (ABS) market's issuance share of the overall fixed income market has decreased from a peak of 38% in 2021 to approximately 19% in 2024, yet it remains a significant component of the U.S. capital market [3][68]. - The total issuance of asset-backed securities in the U.S. reached $10.43 trillion, with a notable decline in 2022 due to the Federal Reserve's interest rate hikes and rising credit risks, leading to a 53% drop in issuance [5][78]. - As of the end of Q3 2025, approximately $1.7 trillion has been issued in the U.S. asset-backed securities market in 2024, indicating a recovery trend [13][78]. Market Insights - The European asset-backed securities market has shown recovery since 2023, with an estimated issuance of €2.449 trillion in 2024, reflecting a year-on-year growth of about 15% [14][85]. - By the end of Q2 2025, the total outstanding size of the European asset-backed securities market was approximately €125.3 billion, primarily composed of RMBS and CDO/CLO, which accounted for 46% and 22% respectively [14][85]. - The share of placed issuance in the European asset-backed securities market has increased from about 38% in 2015 to approximately 63% in 2025, indicating a trend towards more marketable securities [14][85]. Market Hotspots - The global issuance of asset-backed bonds reached a record high of €689 billion in 2023, driven by demand for alternative financing tools as banks shifted away from quantitative easing [35][95]. - Asset-backed bonds have demonstrated resilience even during economic turmoil, with Europe remaining the largest market for these securities, having issued over €140 billion by the end of 2024 [35][95]. - Notably, asset-backed bonds have been rated above sovereign ratings in certain cases, with examples showing ratings exceeding sovereign levels by up to 4 notches due to structural mitigants and legal frameworks [29][31][36]. Market Outlook - The asset-backed securities market is expected to continue evolving with innovative products and development trends, particularly in response to macroeconomic conditions and regulatory changes [67].

Core Insights - The Shanghai Stock Exchange's (SSE) market for asset-backed securities (ABS) backed by real estate is expanding, with a diverse range of underlying asset types including data centers, highways, rental housing, and industrial parks [1][2] - The SSE has made significant progress in establishing an information disclosure mechanism for real estate ABS, with the release of third-quarter asset management reports and a core element table, enhancing transparency for investors [1][2] Group 1: Information Disclosure Mechanism - The introduction of the core element table and information disclosure area aims to standardize data and improve comparability among various ABS products, addressing previous challenges of inconsistent data standards [2][3] - High-quality information disclosure is seen as an inherent requirement of the "equity attribute" of real estate ABS, facilitating a unified, timely, and effective decision-making process [2][3] Group 2: Market Impact and Investor Confidence - Enhanced information disclosure quality is expected to significantly improve the comparability and effectiveness of ABS product data, providing more precise decision-making tools for market participants [3][5] - Regular disclosure of operational data and core element tables allows investors to gain insights into key metrics such as rental levels, occupancy rates, and tenant structures, thereby boosting confidence in the projects [4][5] Group 3: Economic Implications - The development of the real estate ABS market is fundamentally about converting dormant assets into tradable financial products, thereby revitalizing the economy [7] - The ongoing improvement of the information disclosure mechanism is anticipated to facilitate a shift from "product trading" to "asset operation," injecting sustainable momentum into high-quality economic development [7]

Core Insights - The China Securities Investment Fund Industry Association reported that in October 2025, a total of 130 asset-backed special plans (ABS) were newly registered, amounting to a total scale of 1,338.60 billion yuan [1] - Among these, two ABS related to public REITs in infrastructure were registered, with a total scale of 26.82 billion yuan [1] Summary by Categories New Registrations - The top three ABS underlying assets for new registrations in October were micro-loan receivables, financing lease receivables, and accounts receivable, with registration scales of 329.23 billion yuan, 258.17 billion yuan, and 229.69 billion yuan respectively [3] Existing ABS - As of the end of October 2025, there were 2,596 existing ABS with a total scale of 22,373.77 billion yuan [5] - The existing ABS related to public REITs in infrastructure totaled 84, with a scale of 2,051.95 billion yuan [5] - The existing ABS with underlying assets such as accounts receivable, real estate holding ABS, CMBS, financing lease receivables, and micro-loan receivables accounted for a total scale of 17,621.94 billion yuan, representing 78.76% of the total existing scale [5] - The remaining ABS with other underlying assets had a total scale of 2,699.88 billion yuan, accounting for 12.07% of the total existing scale [5]

Core Insights - The issuance of the "Guotai Haitong - Zhongyuan Yuzhi Building Smart Building Commercial Property Asset-Backed Special Plan" by Yuzhi Guarantee Housing Company has successfully completed with a scale of 603 million yuan and a term of 18 years, achieving a record low coupon rate of 2.3% for 5-year CMBS in China [1] Group 1: Issuance Details - The issuance size is 603 million yuan with a term structure of 5+5+5+3 years [1] - The coupon rate of 2.3% marks the lowest in the history of 5-year CMBS in China [1] - The offering was oversubscribed by more than 3.4 times, indicating strong market demand [1] Group 2: Significance and Innovation - This issuance represents the first 5-year CMBS from a provincial state-owned enterprise in the past five years and is also the first of its kind in Henan Province [1] - The innovative cross-regional asset packaging model covers a diverse property portfolio across five provinces and five cities, addressing the challenges of financing for scattered regional assets [1] - The flexible structure of "1 large asset supporting 5 small assets" integrates core assets with multiple smaller properties, unlocking potential value and attracting attention from various investors including banks, insurance companies, trusts, and securities firms [1]

Report Industry Investment Rating - No relevant content provided Core Views - The "15th Five-Year Plan" draft proposes to support the development of innovative products such as asset securitization and promote the high - quality development of the real estate industry [2] - The "Action Plan" supports the issuance of REITs for eligible commercial real estate projects, which is conducive to revitalizing the stock assets in the commercial real estate field and promoting the recovery of the real estate industry [3] - In September 2025, the issuance of asset - securitized products in the whole market increased significantly, and the issuance costs of different types of products were differentiated [7] - The issuance scale of products in the inter - bank and exchange markets has increased, with the largest increase in credit ABS [16] - The trading activity of ABS products in the secondary market has generally increased, and products such as class REITs and micro - enterprise loans have relatively active transactions [19] Summary by Directory 1. Overall Market Issuance Situation - In September 2025, a total of 299 issues of asset - securitized products were issued in the whole market, with a total scale of 268.78 billion yuan, a 43% increase from the previous period [7] - The average issuance costs of policy - loan - based and micro - enterprise - loan - based products were relatively high, while those of personal auto - loan products were relatively low [7] - The secondary - stratification ratios of products such as trust - beneficiary rights, shantytown - renovation/affordable - housing, and accounts - receivable did not exceed 10%, while that of non - performing - loan products remained at a high level [7] - The stratification ratios of different products with underlying assets such as micro - enterprise loans and class REITs varied greatly [7] - Exchange - traded ABS: 191 issues were issued, with a total scale of 164.946 billion yuan, a 41% increase from the previous month. The coupon rates of priority products with disclosed credit ratings ranged from 1.65% to 3.95% [13] 2. Issuance Situation in the Inter - bank and Exchange Markets - Inter - bank market ABS: 38 issues of products were issued, with a scale of 36.569 billion yuan, a 72% increase from the previous month. The priority products were all rated AAAsf, and the highest coupon rate was 2.80% [16] - The secondary - stratification ratios of products ranged from 12% to 35%, and nearly 90% of inter - bank ABS products had a secondary - stratification ratio of over 20% [16] - Transaction - Association ABN: 70 issues were issued, with a total scale of 67.363 billion yuan, a 16% increase from the previous month. The coupon rates of priority products with disclosed credit ratings ranged from 1.60% to 3.80% [17] 3. Secondary Market - Inter - bank market ABS: The total trading volume was 20.378 billion yuan, and the trading activity increased significantly. Non - performing - loan products had the largest trading volume [19] - Exchange - traded ABS: The total trading volume was 104.656 billion yuan, and the trading scale increased significantly from the previous month. Class REITs products had the largest trading volume [22] - Transaction - Association ABN: The total trading volume was 54.07 billion yuan, and the trading scale further increased. Micro - enterprise loans and bank/Internet consumer loans had relatively active transactions [25]

Core Viewpoint - The successful issuance of the "Hua'an-Xingtai Leasing-Data Asset Supporting Intellectual Property ABS" marks a significant milestone in the asset-backed securities (ABS) market, specifically aimed at supporting technology innovation enterprises in industrial parks [1] Group 1: ABS Product Development - Xingtai Holdings has issued a total of 5 ABS products with a cumulative scale of 1.783 billion yuan, targeting various types of enterprises including small and medium-sized enterprises and technology-driven companies [1] - The recent ABS product features a coupon rate of 1.86%, making it the first of its kind in the country to support intellectual property for technology innovation [1] - The ABS "Xingtai Model" has emerged, characterized by a diverse product matrix that effectively revitalizes various asset classes, including financing leasing and commercial factoring [2] Group 2: Data Empowerment and Risk Control - The "Xingtai Model" utilizes data empowerment to create risk profiles for enterprises, enhancing the credibility of investment in ABS products through a risk control model based on the "Research Value Score" [2][3] - This model aims to lower financing costs for enterprises by providing a one-stop ABS financing service that connects asset value with capital market opportunities [2] Group 3: Intellectual Property as Financial Assets - Intellectual property ABS products have transformed "paper patents" into "development funds," enabling companies to leverage high-value patents for financing [4] - Xingtai Leasing has issued approximately 691 million yuan in intellectual property ABS products, facilitating financing for nearly 100 technology companies [4] - The AAA-rated guarantee from Xingtai ensures a stable operation of the ABS products, providing a safety net for investors while supporting low-cost financing for enterprises [4] Group 4: Support for SMEs and Innovation - The Shanghai Stock Exchange (SSE) is actively promoting financial support for small and medium-sized enterprises and technology-driven companies through various initiatives, including the "Five Major Financial Articles" action plan [6][7] - The ongoing development and replication of the ABS "Xingtai Model" are expected to enable more enterprises to utilize asset securitization tools to activate existing assets and attract low-cost capital for economic development [7] - The SSE plans to enhance product case promotion to help SMEs and technology enterprises better understand and utilize asset securitization products to reduce financing costs and broaden funding channels [7]