On February 21st, 2017, Real Estate fifth progress of asset support program special project obtained the consent letter of list on Shanghai Stock Exchange. On March 16th, 2017, this special project was established formally. The original equity of this asset securitization is Shanghai Real Estate Leasing Co.,Ltd., project manager is Donghai Securities Stock Co.,Ltd., custodian bank is Shanghai Pudong Development Bank Stock Co.,Ltd. Shanghai branch, the credit rating agency is CCXR, registration agency is China Securities Depository and Clearing Co.,Ltd. Shanghai branch, Zhongyin (Shanghai) Law Firm provide legal services for this project. The transaction structure is as followings:

Shanghai Real Estate Leasing fifth asset support program special project’s basic assets is the right to rent, other rights and interests that tenantry enjoys, that the original equity holder transfers to the original interest holder according to the contracts of financial lease. The size of this project involves in 15 copies of the lease contract, the total receivable rent amounted is up to 3 billion and 2 million yuan, single lease contract maximum principal balance is 330 million yuan, single lease contract average principal balance is 200 million 133 thousand and 300 yuan, the concentration ratio of the lessee with the highest principal balance is 10.99%.

This special program’s first source of repayment is the cash flow from basic fund, using basic asset redemption, excess coverage, priority/secondary structure provides comprehensive credit guarantee. After the completion of the principal asset backed securities, distributing all of the balance to the subordinated asset-backed securities holders as the principal and income of subordinated asset-backed securities. Priority class A asset-backed securities target is 2 billion 221 million yuan, priority class B asset-backed securities target is 420 million yuan, secondary asset-backed securities target is 361 million yuan, secondary asset-backed securities can provide 12% of credit support for priority shares, priority B asset-backed securities and subordinated asset-backed securities can provide 26% of credit support for priority class A asset-backed securities.

Zhongyin (Shanghai) Law Firm’s team composed by partner Wan Xinhui lawyer, lawyer Wu Yong and apprentice lawyer Dai Zheng, provided full document drafting and review legal services for this program, including legal due diligence, transaction structure design, providing legal advisory paper, asset support program standard terms, asset purchase agreement, asset service agreement, subscription agreement and risk disclosure, guarantee agreement and so on.