Chapter I General Provisions Article 1 In order to standardize the pilot work of credit asset securitization, promote financial institutions to prudently carry out credit asset securitization business, effectively control related risks in credit asset securitization business, and protect the legitimate rights and interests of investors and relevant parties, in accordance with the Banking Supervision Law of the People's Republic of China, the Law of People's Republic of China (PRC) Commercial Bank, the Law of People's Republic of China (PRC) Trust and other relevant laws and administrative regulations. Article 2 The financial institutions mentioned in these Measures refer to commercial banks, policy banks, trust and investment companies, finance companies, urban credit cooperatives, rural credit cooperatives and other financial institutions supervised and managed by the China Banking Regulatory Commission (hereinafter referred to as the CBRC) according to law. Article 3 These Measures shall apply to structured financing activities in People's Republic of China (PRC) where banking financial institutions, as promoters, entrust credit assets to trustees, and the trustees issue beneficiary securities to investment institutions in the form of asset-backed securities, and pay the proceeds of asset-backed securities with cash generated from the property. Article 4 Financial institutions are promoters, trustees, credit enhancement institutions, loan service institutions, fund custodians, asset-backed securities investment institutions, etc. Engaged in credit asset securitization business activities, should be in accordance with the provisions of laws, administrative regulations, departmental rules and legal documents related to credit asset securitization, perform corresponding duties, and effectively identify, measure, monitor and control related risks. Article 5 The CBRC shall supervise and manage the securitization business activities of credit assets of financial institutions according to law.

Without the approval of the CBRC, financial institutions may not engage in credit asset securitization business as sponsors or special purpose trusts. Chapter II Market Access Management Article 6 The initiator of credit asset securitization refers to a financial institution that transfers credit assets through the establishment of a special purpose trust. Article 7 As the initiator of securitization of credit assets, a banking financial institution shall meet the following conditions when transferring credit assets through the establishment of a special purpose trust:

(1) It has a good social reputation and business performance, and has no major violations of laws and regulations in the last three years;

(2) It has good corporate governance, risk management system and internal control.

(3) Having a reasonable target orientation and clear strategic planning for securitization of credit assets, and conforming to the overall business objectives and development strategy;

(4) Criteria and procedures for selecting the appropriate trustee of the special purpose trust;

(5) Having professionals, business processing systems, accounting systems, management information systems and risk management and internal control systems required for the securitization of credit assets;

(6) It has no bad record of engaging in credit asset securitization business in the last three years;

(7) Other prudential conditions stipulated by the CBRC. Article 8 The trustee institution of special purpose trust refers to the institution responsible for managing the special purpose trust property and issuing asset-backed securities due to the trust commitment in the process of securitization of credit assets. The trustee shall be a trust and investment company established according to law or other institutions approved by the CBRC. Article 9 A trust and investment company acting as the trustee of a special purpose trust shall meet the following conditions:

(a) according to the relevant provisions of the state to complete the re registration for more than three years;

(2) Its registered capital is not less than 500 million yuan, and its net assets at the end of the last three years are not less than 500 million yuan;

(3) The assets of the self-operated business are in good condition and have good liquidity, meeting the relevant regulatory requirements;

(4) The original deposit and liability business has been completely cleared, and no new deposit and liability business or disguised liability business handled in the name of trust and other businesses has occurred;

(5) It has a good social reputation and business performance, all the expired trust projects have been successfully completed according to the contract, and there is no bad record of misappropriation of trust property, and there has been no major violation of laws and regulations in the last three years;

(6) Having good corporate governance, trust business operation flow, risk management system and internal control;

(7) Having professionals, business processing systems, accounting systems, management information systems, risk management and internal control systems required to perform the duties of the trustee of a special purpose trust.

(8) The annual report of the company has been disclosed as required;

(9) Other prudential conditions stipulated by the CBRC. Article 10 A trust and investment company applying for the qualification of trustee of a special purpose trust shall apply to the CBRC and submit the following documents and materials (in triplicate):

(1) An application report;

(2) the company's business license, certificate of registered capital and certificate of re-registration for more than three years;

(3) Operating rules, accounting system, risk management and internal control system for managing the special-purpose trust property;

(4) The names and resumes of the business directors and major business personnel who manage the trust property for a specific purpose;

(5) The audited financial statements of the company in the last three fiscal years;

(six) the applicant's self-discipline commitment;

(7) Other documents and materials required by the CBRC.