PBC Issues Draft Rules for Verification of Standard Debt-Based Assets

Under the rules, standard debt-based assets refer to bonds, asset-backed securities, and other fixed-income securities, which are issued according to the relevant regulations. Other fixed-income securities include treasury bonds, central bank bills, local government bonds, financial bonds, debt-financing instruments for non-financial enterprises, bonds issued by international institutions, interbank certificates of deposit, credit asset-backed securities, asset-backed bills, and asset-backed securities listed for trading on stock exchanges. The rules further specify that to be recognized as standard debt-based assets, other debt-based assets are required to meet requirements related to the following:

• Equal division and tradability
• Information disclosure
• Centralized registration and independent custody
• Fair-value pricing and sound liquidity mechanism
• Trading of assets on markets approved by the State Council

Comment Due Date: November 10, 2019

Keywords: Asia Pacific, China, Banking, Securities, Asset-backed Securities, Debt-based Securities, Asset Management, PBC