Assets Securitization
JunHe attorneys were among the earliest to provide professional financial legal services in the Chinese market, and have extensive experience in the provision of legal services for financial business. Through its tireless efforts, JunHe has become the market leader in Chinese legal services for financial business. Since 1998, JunHe has been recognized year after year by numerous international authoritative legal journals such as Asia Pacific Legal 500, Chambers Global – Leader, and Asia Legal Business as one of the best law firms in banking, financing and capital markets, project finance and infrastructure.
Our Team
All attorneys on JunHe’s asset securitization team have graduated from top law schools both home and abroad, and have a solid legal theoretical foundation and extensive practice experience with prestigious law firms. Lawyers on the team have sustained their excellence performing at the forefront of the market, and demonstrating the ability to creatively solve structural problems by applying the laws currently in force. They have long served various financial institutions in China and have extensive practice experience in Chinese business.
Core Areas of Practice
Asset securitization of enterprise loans
Securitization of individual housing mortgage loans
Asset-backed notes
Specific asset management plan
Lease securitization
Future creditor’s asset securitization
Non-performing asset securitization
Real estate investment trusts (REITS)
Structured finance
Integrated Legal Services
Relying on its financial legal service team, JunHe’s team of asset securitization is a team of well-trained professional lawyers that have extensive experience in various large and complicated financial transactions, and serves the leading role in the asset securitization. For many years, we have been dedicated to the provision of legal services to sponsors, managers, asset service agencies, banks and other various transaction participants with the scope of legal services covering:
Transaction structure design and argumentation: (1) to make analysis together with other intermediary institutions on whether the underlying assets can be securitized; and (2) to design an asset securitization structure and plan that comply with the demands of the transaction parties, and provide legal reasoning on risk prevention;
Legal due diligence investigation on underlying assets: (1) to conduct legal due diligence investigation on relevant entities; (2) to carry out legal due diligence investigation on the underlying assets accordingly; (3) to determine through analysis the legal property of the underlying assets and the legitimacy and validity of its security measures through review of the corresponding contracts and other legal documents; and (4) to issue legal due diligence reports according to the project needs;
Drafting and review of legal documents: (1) to determine jointly with other intermediary institutions the standard for pooled assets; and (2) to draft and revise the transaction documents according to the transaction structure that has been fixed; and
Issuance of legal opinions.
Recent Representative Cases
1. Suzhou Housing Fund Loan Asset Support Project of Soochow Securities Co., Ltd. In this project, JunHe represented Soochow Securities Co., Ltd. to provide legal services for its Suzhou Housing Fund Loan Asset Support Project. The scope of services included project design, transaction structure, legal reasoning on the transaction structure, due diligence investigation, issuance of legal opinions, drafting, amending until the finalization of all transaction documents, and provision of advisory services with respect to various legal issues on the project. This project had a transaction amount of RMB 2 billion, and is the largest project in the housing fund projects listed in the Shanghai Stock Exchange in terms of the transaction amount.
2. Xingjian Series of Property Right Trust Asset Securitization Project of China Industrial International Trust Limited. In this project, JunHe represented China Industrial International Trust Limited to provide legal services for its Xingjian Series of Property Right Trust Asset Securitization Project (Xingjian Phase 1, Xingjian Phase 3, Xingjian Phase 4, Xingjian Phase 5, Xingjian Phase 6, and Xingjian Phase 8). The scope of services included project design, transaction structure, legal reasoning on the transaction structure, due diligence investigation, issuance of legal opinions, drafting, amending until the finalization of all transaction documents, and provision of advisory services with respect to various legal issues in the project. This project had a transaction amount of approximately RMB 1 billion.
3. Harvest Capital – Fenqile No.1 Asset Support Special Plan Project. This Plan is the first asset securitization product for an internet consumer finance concept on the Shanghai Stock Exchange. The Plan adopts a cycling purchase structure, and makes credit enhancement through internal grading, introduction of a third party institution for making up the balance, excess spread and reserve fund and other arrangements. It also had unique features in the creation of the assets pool. In this project, JunHe provided integrated legal services for the transaction structure arrangement, due diligence investigation and issuance of legal opinions, drafting and amendment of transaction documents, and replying to the feedback from the stock exchange.
