Home » Jia Wenqin: It is recommended to speed up the special legislation on REITs to improve my country’s credit debt default disposal mechanism jqknews

Jia Wenqin: It is recommended to speed up the special legislation on REITs to improve my country’s credit debt default disposal mechanism jqknews

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Firmly grasping the mission of promoting high-quality development, and focusing on the macro themes of “stability” and “progress”, capital market reform has been continuously advanced.

On the eve of the National People’s Congress and the National People’s Congress this year, Jia Wenqin, deputy to the National People’s Congress and director of the Beijing Securities Regulatory Bureau, accepted thesecuritiesReporter’s interview.She introduced that focusing on the reform and development of the capital market, she plans to put forward various proposals this year, mainly including accelerating real estate investment trustfund(REITs) special legislation, improve my country’s credit debt default disposal mechanism, and improve the accounting firm’s professional risk fund management mechanism.

Jia Wenqin believes that the launch of the pilot infrastructure public offering REITs is just in time, which is of great significance in terms of stabilizing growth and preventing risks. At present, special legislation on REITs should be accelerated, product design should be optimized, transaction structure should be simplified, and the REITs market should be developed and expanded. In addition, after the rigid payment is broken, it is very necessary to further improve and perfect the credit bond default disposal mechanism.

Speed ​​up special legislation to optimize REITs products

In 2021, the pilot of infrastructure public offering REITs was successfully launched and running smoothly, marking a key step in the construction of my country’s public offering REITs market. Recently, the China Securities Regulatory Commission, the National Development and Reform Commission and other departments have released signals that the pilot scope of publicly offered REITs is expected to steadily expand, and the market development is highly anticipated. Jia Wenqin told reporters that at the two sessions this year, she will propose to speed up the special legislation for REITs.

It is understood that compared with the mainstream REITs in the world, the “public fund + ABS” model adopted in my country’s pilot phase is a relatively feasible solution under the current legal and regulatory framework, but due to the large number of participants, the product structure and legal relationship are more complicated. It is difficult to define and coordinate the responsibilities of all parties. Jia Wenqin pointed out that an important consideration for promoting the special legislation of REITs is to solve the problems of legal positioning of products, optimization of product structure, endogenous integration of industry and finance, and full coverage of legal responsibilities.

The reporter noticed that when the China Securities Regulatory Commission announced its 2022 legislative plan, it mentioned that it would speed up the study and introduction of real estate investment trust fund measures.

Jia Wenqin said that the newsecuritiesThe law explicitly requires asset supportsecuritiesThe issuance and trading management measures are stipulated by the State Council in accordance with the principles of the Securities Law, creating favorable conditions for the special legislation to clarify REITs as real estate asset-backed securities. In order to better play the role of publicly offered REITs, she suggested that the CSRC should take the lead, summarize the experience of pilot work, learn from international mature practices, focus on publicly offered contractual REITs, formulate business management measures for real estate investment trust funds, and optimize the product design of infrastructure REITs. Simplify the transaction structure, improve the supervision and management system, build a solid bottom line for risk prevention, systematically build a rule system that conforms to the development law of REITs, promote the development and growth of the REITs market, and serve the high-quality development of the real economy.

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Improve the credit debt default disposal mechanism

The bond market is an important component of the multi-level capital market system. With the normalization of credit risk exposure, bond default disposal has gradually attracted the attention of all parties, and has become one of the important means to prevent and resolve financial risks.

“The construction of the default bond disposal mechanism is a systematic project. It is recommended to take multiple measures to strengthen the system supply, speed up the market construction, and gradually form a bond market ecosystem in which the market plays a leading role and self-solves and disposes risks under the guidance of judicial protection and supervision. “Jia Wenqin said.

She suggested doing three “further steps”, namely: further strengthening the institutional supply of bond default disposal. Accelerate the research and formulation of corporate bond management regulations, refine and improve the entrusted management system and the bondholders’ meeting system, upgrade the legal hierarchy, and give full play to their core role in the disposal of bond defaults. Further clarify the connection between the financial debt committee system, the trustee system, the holder’s meeting system and other systems, and clarify the scope of responsibilities and work requirements of various participating debt committee members. In the process of revising the Enterprise Bankruptcy Law, the characteristics of bond issuers and bond products shall be fully considered, and the connection with relevant laws such as the Securities Law shall be strengthened, so as to establish a bankruptcy legal system that is conducive to safeguarding the legitimate rights and interests of all parties and improving the efficiency of bond default disposal.

Further accelerate the construction of the default bond trading market. It is recommended to enrich the bond market level, formulate a market rule system such as transaction transfer and information disclosure in line with the characteristics of defaulted bonds and risky bonds, and create a special trading market. In the specialized market, the trading threshold will be appropriately lowered to enhance market liquidity. Encourage qualified domestic and foreign investment institutions with strong risk identification and tolerance capabilities and long-term engaged in non-performing asset disposal to participate in default bond market transactions.Continue to optimize the existing bond replacement system and offerrepoThe research allows asset management companies to buy high-risk bonds that have not yet defaulted but whose risks have been clearly exposed, so that they can participate in debt risk resolution earlier. Cultivate investor groups with high risk appetite and counter-cyclical investments in distressed companies.

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Further improve the default debt disposal ecosystem. In the process of dealing with bond defaults, local governments must not only resolutely assume the territorial responsibility for dealing with financial risks, but also use more legal thinking and introduce more market-oriented methods, reduce improper intervention and administrative orders, and respect the legitimate rights and interests of all market players. Regulatory authorities should continue to deepen bond rating supervision, urge rating agencies to improve the level of default risk disclosure and early warning, and establish and improve default databases. Encourage intermediaries to play the function of valuation and pricing to provide bond valuation services for defaulted bonds. Guide securities companies to improve their capital strength and professional level, make full use of various financial instruments in the capital market, and provide a package of solutions for defaulting companies to deal with debt problems. Exploring bankruptcy cases involving defaulted bond issuers are under the jurisdiction of the Financial Courts, where conditions permit.

Perfect accounting firm

Civil Liability Assurance Mechanism

Talking about the increasing number of cases of accounting firms bearing compensation liability under the “zero tolerance” situation, Jia Wenqin said that the relevant mechanisms should be further improved to enhance the risk-taking and civil compensation guarantee capabilities of accounting firms.

She suggested achieving “three perfections”, namely: perfecting occupational risk fund management. Scientifically set the accrual standard for occupational risk funds with a floating ratio. The higher the comprehensive risk, the higher the accrual ratio should be. At the same time, strengthen standardized management and supervision. It is recommended to formulate detailed rules for the management of occupational risk funds of accounting firms, clarifying that occupational risk funds should be specially managed, stored in special accounts, and dedicated to expenditure, and require firms to set up a reasonable freezing and storage period for funds when liquidation occurs to protect potential creditors (investors) rights and interests, and establish a third-party supervision and inspection system for risk funds.

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Improve current professional responsibilitiesinsurancesystem. The first is to strengthen institutional guarantees.It is suggested that relevant departments should take into account the actual situation of securities business and take professional responsibility forinsuranceThe important clauses are unified and standardized, and on the basis of considering the business needs of the accounting firm, it reflects the standardized guidance of the government department for the overall development and guarantees professional responsibility.insuranceimplementation effect. The second is to explore the implementation of industry-focused insurance. Designate one or several professional professional liability insurance companies to carry out the professional insurance business of accounting firms in order to improve the standardization level of professional liability insurance. The third is to improve claims standards. Distinguish the standard and limit of compensation when the accounting firm has intentional or presumed intention, gross negligence and general negligence, and improve the multi-level protection effect of professional liability insurance. Fourth, establish a reasonable premium pricing mechanism. Relying on big data, it analyzes the business types, practice scales, lawsuits and penalties carried out by accounting firms, and accurately calculates the premiums and insured amounts.

Improve the profit distribution mechanism of accounting firms. On the one hand, the firm should establish an assessment and salary incentive and restraint mechanism with practice quality as the core, realize the integration of income distribution, and eliminate the situation that the income of partners is directly linked to the contracted projects. On the other hand, referring to the practice of deferred payment of remuneration in the financial industry, strengthen the restriction of partners’ remuneration, and organically combine it with the firm’s civil compensation risk reserve, urge partners to be diligent and responsible, and effectively improve the quality of capital market audits.

In addition, Jia Wenqin also suggested exploring the “three-in-one” mode of trial of securities and futures cases in the financial court. “At present, securities and futures criminal cases are increasingly showing the characteristics of multiple criminal subjects, specialized means of committing crimes, and concealed criminal behavior, which makes it difficult to handle cases. It is necessary to explore how financial courts will conduct administrative litigation, civil litigation, and criminal litigation in the field of securities and futures. Centralized and unified jurisdictional trials and the establishment of a ‘three-in-one’ trial model for civil and criminal punishment are very necessary,” she said.

(Article source: China Securities Journal)

(Original title: Connection of the Two Sessions | Jia Wenqin: It is recommended to speed up the special legislation on REITs and improve my country’s credit debt default disposal mechanism)

(Editor in charge: 92)

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