NAFMII Seeks Comments on Guidelines on Information Disclosure for Non-Performing Loan-Backed Securities

Recently, the National Association of Financial Market Institutional Investors (NAFMII) has released the Guidelines on Information Disclosure for Non-Performing Loan-Backed Securities (2026) (Draft for Comment) (the "Draft") for comments from market participants. Comments may be submitted until October 30, 2026.

The Draft defines non-performing loan-backed securities as securitization financing instruments under which, within China, a banking financial institution or another financial institution recognized by the regulatory authorities, acting as the originator, entrusts non-performing loans to a trustee, which issues beneficiary securities in the form of asset-backed securities to institutional investors, with cash generated from the non-performing loans used to pay returns on the asset-backed securities. The Draft provides that trustees and originators shall duly fulfill their information disclosure responsibilities, ensure that the information disclosed is truthful, accurate, complete, and timely, contain no false records, misleading statements, or material omissions, and assume primary responsibility for disclosure. Intermediaries shall perform their due diligence responsibilities as agreed in contracts, disclose information in accordance with the law, and be responsible for the professional reports and opinions they issue.



(Source: https://www.nafmii.org.cn/ggtz/tz/202610/t20261021_326826.html)

Note: The link to the Chinese official website of the document is for your reference.