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Zhong Lun’s Saloon on Securitization 2007-08-28

    A seminar on legal transactions involved in securitization business was held on August 24, 2007 at the firm’s Beijing office, and real time telecasted to Shanghai, Shenzhen, Guangzhou and Tokyo offices.

    Mr  Liu Bo-rong, the leading partner of firm’s team in securitization practice, made opening remark with basic knowledge of securitization business, current development of securitization business in China, and the leading role that Zhong Lun is in the market. Then three associates of the firm’s Financial Department, Long Hai-tao, Tian Zhi-gang and Li Ke, shared their thoughts in this area with the audience respectively via report of case analysis prepared in the process of the firm’s semi-annual review.

    In his report in title of “A General Introduction to and Typical Case Analysis of Securitization Business”, Long Hai-tao made a rather systematic introduction to the securitization business with focus on key definitions, meanings, classification, difference  between securitization and traditional fund raising mechanisms, underlying assets, and assets-backed-securitization (ABS). In addition, Mr. Long went further into certain actual transactions to analyze in detail the current business status, legal authorization, transaction structure, establishment of transaction accounts, and payment priority in cash flow.

    Li Ke reported on details that how a structured finance under trust program is structured, what are transacted under a consolidated capital trust program, how the beneficiary’s interests are classified and protected.

    Tian Zhi-gang covered an actual case in a first domestic quasi-REITs for a structured funding for a domestic real estate project, starting with brief introduction to the background, parties, deal structure, and deal process, Mr. Tian focused his analysis on keys issues of a REIT and the solutions for a typical deal based on his rich experience in handling variety of legal uncertainty in structuring and implementing a REIT deal in China.

    The seminar helped the attendants to know more about securitization and it can also benefit our associates for   improving their skill and knowledge in handling other transactions, related or non-related to this topic. It is firm’s intent that training via seminars and saloon discussion involving partners and associates will continue as part of the firm’s a regular training program.