Asset-backed securities (ABS) are direct financing instruments. The originator uses compliant assets capable of generating stable, predictable cash flows as underlying assets. A manager, such as a securities company, establishes an asset-backed special plan as a special purpose vehicle to issue asset-backed securities to investors. The proceeds raised are used to acquire the underlying assets from the originator, and the cash flows generated by the underlying assets are distributed to holders of the asset-backed securities as agreed. Financing through asset-backed securities enables originators to isolate underlying asset risks from their own. Backed by cash flows from high-quality assets, securitized products can achieve higher credit ratings, thereby lowering financing costs.

In December 2005, SZSE launched its first corporate asset securitization product, offering transfer services via the Integrated Negotiated Trading Platform and marking the start of its exploration of asset securitization in the Shenzhen market. To date, SZSE has established an end-to-end regulatory framework for ABS covering review, issuance and listing, and ongoing supervision. It has steadily expanded underlying asset classes and actively developed innovative products spanning intellectual property, real estate, and inter-institutional REITs, leveraging asset securitization to revitalize existing assets, increase the share of direct financing, and serve the real economy. As of the end of September 2026, cumulative issuance of ABS on SZSE exceeded RMB 3 trillion, creating a market that spans diverse underlying assets such as debt assets, future operating revenues, and real estate.