DeHeng Advised Guolian Securities – Dianzhong Factoring Phase

1-10 Asset-backed Security on Obtaining the No-Objection Letter 

2021-05-25

On April 7, 2021, the Shenzhen Stock Exchange issued a no-objection letter on the issuance of Guolian Securities – Dianzhong Factoring Phase 1-10 Asset-backed Security. This ABS was initiated by Shenzhen Dianzhong Commercial Factoring Co., Ltd. as the original equity owner of the underlying assets and Guolian Securities as the portfolio manager.

The underlying assets are the accounts receivable and their collateral security interests held by the original equity owner against the home buyers as of the corresponding base date according to the home purchase contracts and the factoring contracts, and are transferred to the portfolio manager on the establishment date of the security and the circular buying date. The security will be issued in installments, with the total value to be issued up to RMB 2 billion in no more than 10 installments.

As the legal counsel for the project, the DeHeng team, led by partner Yu Yunbo, with primary support from Zhu Yijing and Zhao Yueyang, provided professional, comprehensive and high-quality legal services for the client. They designed and verified the deal structure, conducted legal due diligence on the underlying assets, drafted and modified transaction documents, issued final legal opinions and offered comprehensive solutions and opinions on various legal issues. In the future, DeHeng will continue to provide high-quality legal services to our valued clients in the area of asset securitization.