Dacheng Attorneys Advise Lufax on Establishing a Trading System for Securitized CDs

On January 30 2013, Shanghai Lujiazui International Financial Asset Exchange Co., Ltd. (hereinafter referred to as “Lufax”) successfully established a trading system for securitized certificates of deposit (“CDs”). Dacheng acted as legal advisor for Lufax’s financial innovation project.
 
Lufax is a business arm of Ping An Insurance (Group) Company of China, Ltd.. The securitization project is the first attempt by Lufax in its comprehensive financial innovation. The project, where CDs-backed assets were securitized and subject to trading, was undertaken with no pre-existing cases or specific standards to refer to. It was therefore vital to involve legal professionals in the mapping out of the project.
 
Dacheng attorneys provided all-round legal counsel for the project. They made bold financial and legal explorations, solving problems relating to the separation of ownership and beneficiary right of the CDs-backed assets, the feasibility of asset securitization in question, isolation of risk and structuring of the securitized CDs. Eventually, a trading system encompassing product design, transaction rules and regulations, transaction-related contracts and documents was fully established.
 
Dacheng undertook the project on July 26 2012 and delivered results to the client not long afterwards on January 30 2013. The project was accomplished by Beijing-based attorney Pan Pan, Shanghai-based attorneys Zhou Tianlin and Ruan Pinjia and Fuzhou-based Chen Xinhua.