On Aug. 6, 2015, Dacheng in company with GF Securities Asset Management (Guangdong) Co., Ltd. (hereinafter referred to as “GF Asset Management”) assisted Liang Tong Leasing Co., Ltd. (hereinafter referred to as “Liang Tong Leasing”) with the achievement of the issuance of the first incremental asset securities in China. This innovative issuance pattern will bring structural benefit to the development of the industry. A professional Dacheng team comprised of senior partner Kuang Shuangli, partner Pan Pan and attorney Feng Nannan provided full legal support for this project.

The “GF Hengjin – South Cement leasing asset supporting special program” successfully issued by Liang Tong Leasing raised three bln yuan and becomes the largest single leasing asset securities project in the country so far. The senior issuance of this special program was 2,850,000,000 yuan, among which the asset supporting securities of senior A1 raised 3,000,000,000 yuan, while those of senior A2 and A3 respectively raised 9,000,000,000 yuan and those of A4 raised 7,500,000,000 yuan. Meanwhile, the issuance of the sub-tranche was 1,500,000,000 yuan. GF Asset Management acted as the program administrator and promoter for this issuance. Liang Tong Leasing achieved seamless conversion between oversubscription and funds by good reputation and influence, and will afterwards be transferred and exchanged on the comprehensive agreement-based trading platform of Shenzhen Stock Exchange.

The leaseholder of this special program is South Cement, whose majority shareholder is China National Building Material Company Limited (hereinafter referred to as “CNBM”). CNBM’s main business is in cement, light building materials, fibreglass and composites, and engineering services. CNBM is the biggest cement manufacturer in China, the biggest plasterboard manufacturer in Asia, the biggest fan blade producer in China, the biggest fibreglass manufacturer in the world and the global leading service supplier of design of production line and/or EPC regarding glass and cement. The success in the issuance of this special program assists South Cement in revitalizing the fixed asset, expanding financing channels and lowering financing costs.

In these years, Dacheng has successfully cooperated with GF Asset Management on several asset securities projects, most of which are with innovative structures. And the issuer of this special program is Dacheng’s good client with long-term cooperation in the field of leasing.