The Shanghai Stock Exchange has recently unveiled new regulations, officially commencing a pilot program for corporate bond follow-on offerings and asset-backed securities (ABS) capital increase initiatives. This institutional innovation, inspired by the operational framework of interest rate bonds, seeks to refine the bond issuance schedule and fortify liquidity management. As for ABS capital increases, industry experts anticipate that with the progressive enhancement of the system and the expansion of the pilot program, these mechanisms may extend to a broader spectrum of asset classes, including REITs-like products and commercial mortgage-backed securities (CMBS) in the foreseeable future.
