HK Stock Market Move | JXR (01951) rises nearly 5%, plans to launch an asset-backed special plan, expects to issue asset-backed securities to raise RMB 1.93 billion.

JXR (01951) rose nearly 5%, up 4.75% as of press time, at HK$2.205, with a turnover of HK$31.6467 million. On the news front, on September 29, JXR announced that the company plans to launch an asset-backed special plan and expects to issue asset-backed securities to be listed and transferred on the SSE (subject to SSE approval), aiming to securitize the underlying assets held by Hengyu, an indirectly wholly-owned subsidiary of the company, and to raise funds for the operation and development of the group's business. The company and the project manager have submitted an application to the SSE for the asset-backed special plan. The company will appoint the project manager as the project manager of the asset-backed special plan. In connection with the proposed issuance of asset-backed securities, Sanya Jinshu, an indirectly wholly-owned subsidiary of the company (as seller), the project manager (acting as project manager and on behalf of the asset-backed special plan as buyer), and Hengyu (as target company) intend to enter into an equity transfer agreement, pursuant to which Sanya Jinshu will conditionally agree to transfer all of the equity of Hengyu to the asset-backed special plan to be managed by the project manager on the relevant terms and conditions. The total expected fundraising size of the asset-backed securities to be issued is approximately RMB 1.93 billion, estimated by reference to, among other things, the value of the underlying assets to be included in the asset-backed special plan.