Zhongchengxin International: In November, a total of 61 asset-backed notes were issued, with a total issuance size of RMB 63.622 billion yuan.

On December 25th, China Credit International released a report on asset-backed securities products for November 2024. In November, a total of 61 asset-backed securities products were issued, with a total issuance volume of 636.22 billion yuan. Compared to the previous month, the number of issuances increased by 15, and the issuance volume increased by 40.39%. Compared to the same period last year, the number of issuances increased by 29, and the issuance volume grew by 64.35%. The underlying asset types of the issued products include accounts receivable, personal consumer finance, subsidies, supply chain, and microloans. Among them, a total of 25 ABCP products were issued, with a total issuance volume of 297.44 billion yuan, accounting for 46.75% of the total issuance volume. In terms of financing costs, the lowest issuance rate for AAA-rated notes with a maturity of about one year was 2.07%, the highest issuance rate was 4.20%, and the average issuance rate for AAA-rated notes with a maturity of about one year was approximately 2.28%; In the secondary market trading, in November 2024, a total of 638 transactions were conducted in the asset-backed securities secondary market, with a total transaction amount of 696.08 billion yuan, representing a monthly increase of 38.90% in transaction amount and a 2.90% increase in transaction volume compared to the previous month; a 23.87% increase in transaction amount and a 23.17% increase in transaction volume compared to the same period last year. Industry Review: On November 29th, the Bank of China Intermarket Traders Association and the Shanghai Bills Exchange separately issued notices on the pilot innovation of supply chain bill asset securitization and the operating guidelines for the basic assets of supply chain bill asset securitization, innovatively launching a pilot project of supply chain bill asset securitization. The requirements related to supply chain bill securitization are clarified in six aspects: product model, basic assets, trading structure, institutional responsibilities, information disclosure, and supporting measures, focusing on supporting the issuance of asset-backed securities with supply chain bills directly as underlying assets. Issuance Situation According to data from the China Asset Securitization Analysis Network (CNABS), in November 2024, a total of 61 asset-backed securities products were issued, with a total issuance volume of 636.22 billion yuan. Only 2 were publicly issued, while the rest were all privately placed. Compared to the previous month, the number of issuances increased by 15, and the issuance volume increased by 40.39%; compared to the same period last year, the number of issuances increased by 29, and the issuance volume grew by 64.35%. In terms of issuing institutions, in November 2024, State Power Investment Corporation Limited ranked first with an issuance volume of 73.50 billion yuan, accounting for 11.55%; Guotai Trust Co., Ltd. ranked second with an issuance volume of 42.00 billion yuan, accounting for 6.60%; Shenzhen Tencent Micro Finance Co., Ltd. ranked third with an issuance volume of 40.00 billion yuan, accounting for 6.29%; China Eastern Asset Management Corporation ranked fourth with an issuance volume of 39.44 billion yuan, accounting for 6.20%; Xiamen C&D Inc. ranked fifth with an issuance volume of 30.86 billion yuan, accounting for 4.85%. The top ten issuing institutions had a total issuance volume of 366.71 billion yuan, accounting for 57.64%. As for the distribution of basic assets, in November 2024, the types of underlying assets of asset-backed securities products primarily involved accounts receivable, personal consumer finance, subsidies, supply chain, and microloans. Among them, there were 15 accounts receivable products issued, accounting for 25.52% of the total volume; 13 personal consumer finance products issued, accounting for 19.80%; 4 subsidy products issued, accounting for 12.55%; 12 supply chain products issued, accounting for 9.53%; and 6 microloan products issued, accounting for 7.86%. In terms of issuance size distribution, among the products issued in November 2024, the highest issuance size for a single product was 50.80 billion yuan, for the "State Power Investment Corporation Limited 2024 New Energy No. 5 Green Targeted Asset-backed Commercial Paper (Carbon Neutral Bonds)"; the lowest issuance size for a single product was 1.69 billion yuan, for the "China Construction Business Factoring 2024 China Construction Xinjiang Construction No. 2 Supply Chain Targeted Asset-backed Commercial Paper (Rural Revitalization)". The products with issuance sizes in the range of (0,10] billion yuan had the most number of issuances and accounted for 51.07% in total, with a total of 47 issuances. Regarding the term distribution, among the products issued in November 2024, the shortest term was 0.23 years, for the "Heyuan 2023 No. 2 Gezhouba Targeted Asset-backed Commercial Paper"; the longest term was 29.78 years, for the "China Kangfu International Leasing Co., Ltd. 2024 No. 1 China Water No. 1 Targeted Asset-backed Securities (REITs)". Products with terms in the range of (0,1] years had the most number of issuances and accounted for 57.96% in total, with a total of 34 issuances. In terms of level distribution, based on the statistics of issuance volume for each level of notes, AAA-rated notes accounted for 90.90%, AA+ rated notes accounted for 4.94%, A rated notes accounted for 0.13%, A- rated notes accounted for 0.24%, and BBB+ rated notes accounted for 0.09%. Regarding issuance rates, the issuance rates for AAA-rated notes with a maturity of about one year ranged from 2.07% to 4.20% in November 2024, with the average rate roughly around 2.28%. In November 2024, a total of 25 ABCP products were issued, with a total issuance volume of 297.44 billion yuan, accounting for 46.75% of the total issuance volume. The underlying assets included accounts receivable, subsidies, specific non-guaranteed debts, personal consumer finance, and supply chain assets. Among them, 12 accounts receivable ABCP products were issued, with a total volume of 137.75 billion yuan, accounting for 46.3%.1% subsidy ABCP issued a total of 4 products with a total scale of 79.82 billion yuan, accounting for 26.84% of the total issuance scale of ABCP; specific non-gold debt ABCP issued a total of 1 product with a scale of 39.44 billion yuan, accounting for 13.26% of the total issuance scale of ABCP; individual consumption finance ABCP issued a total of 3 products with a scale of 17.00 billion yuan, accounting for 5.72% of the total issuance scale of ABCP; supply chain ABCP issued a total of 3 products with a scale of 10.44 billion yuan, accounting for 3.51% of the total issuance scale of ABCP.Secondary Market Trading Situation In November 2024, there were a total of 638 transactions in the secondary market for asset-backed securities notes, with a transaction amount of 69.608 billion yuan. The transaction amount increased by 38.90% compared to the previous period, and the number of transactions increased by 2.90%. The transaction amount also increased by 23.87% compared to the same period last year, and the number of transactions increased by 23.17%. In terms of the distribution of underlying asset types, the most active categories in the secondary market trading in November 2024 were REITs, personal consumer finance, accounts receivable, partnership interests, and supply chain, accounting for 27.17%, 15.14%, 13.82%, 10.76%, and 8.45% of the transaction amount, respectively. Industry Dynamics Comments On November 29, 2024, the China Bank Intermediate Market Trading Association (hereinafter referred to as the "Trading Association") and the Shanghai Bill Exchange separately issued the "Notice on Conducting Pilot Innovations of Supply Chain Bill Asset Securitization" and the "Shanghai Bill Exchange Supply Chain Bill Asset Securitization Basic Asset Operation Guidelines", innovatively launching a pilot project for supply chain bill asset securitization. The Trading Association clarified the requirements for supply chain bill securitization in six aspects including product model, underlying assets, transaction structure, institutional responsibilities, information disclosure, and supporting measures, focusing on supporting the issuance of asset-backed securities directly using supply chain bills as underlying assets, improving information disclosure requirements, and supporting business innovation in technology and green finance sectors. Comment: This initiative by the Trading Association officially launches the pilot project for supply chain bill asset securitization, supporting the revitalization of bill assets through securitization aggregation packaging, structured credit enhancement technologies, etc., which is beneficial for enhancing the convenience of bill financing and promoting funds directly reaching small and micro enterprises at the end of the supply chain. This is a beneficial complement to supporting financing for small and micro enterprises and also helps promote the bond market's increased support for private, small and micro enterprises. At the same time, the innovation of supply chain bill securitization enriches the asset supply in the bond market, meeting the diversified needs of both investors and borrowers.