King & Wood Mallesons advised Huitianfu Capital Management Co., Ltd. (HTF Capital) on its establishment of asset securitization project of the HTF Capital–Shimao purchasing–house receivables backed specific plan, which is listed for transfer on the Shanghai Stock Exchange (SSE). The total issuance of asset-backed securities (ABS) of this project is RMB 600 million yuan, among which the senior notes of ABS are RMB 540 million yuan. Zhong Cheng Xin International Credit Rating Co., Ltd (CCXR) gives AAA provisional rating to the senior notes. As liquidity support, Shanghai Shimao Construction Co., Ltd. promises to make the deficiency payment, and Shimao Property Holdings Ltd. will provide a commitment letter dedicated to maintaining a good relationship.  The project marks the first asset-backed specific plan which used the account receivable of purchasing property as underlying assets in China, and is another major innovation for Shimao Group in the area of real estate finance, after launching the first ABS of property-fee receivables in July. The ABS of purchasing–house receivables not only enriches the levels and products of the domestic financial market, but also stands out as a breakthrough initiative in terms of real estate enterprises seeking to broaden low-cost financing channels.

HTF Capital is a subsidiary of Huitianfu Fund Management, Co., Ltd., which was founded in March 2013. As of September 2015, it has launched over 300 products with a total amount of RMB 80.4 billion yuan.

KWM acted as the PRC counsel for HTF Capital which is the plan manager and promoting agency in the asset securitization project, providing Chinese legal advice to all aspects of the project. The KWM legal team was led by partners Zhang Mingyuan and Eddie Hu.