Dacheng Assists in Issuing China's First ABS Product with Integrated and Decentralized Cash Flow Mechanism

On November 20, 2025, “CREC Capital Gongxin Phase 42 Asset-Backed Special Plan” was successfully listed on the Shanghai Stock Exchange. As a phased issuance project under the shelf program established by China Railway Group Limited, this product marks the first asset-backed securities (ABS) product in China adopting an integrated and decentralized cash flow management mechanism. The special plan has an issuance size of RMB 5.4 billion with a term of 3 years, and all senior securities are rated AAAsf.

The original creditors include China Railway 10th Bureau Group Co., Ltd., China Railway 5th Bureau Group Co., Ltd., China Railway Major Bridge Engineering Group Co., Ltd., China Railway 3rd Bureau Group Co., Ltd., China Railway Transportation Investment Group Co., Ltd., China Railway 6th Bureau Group Co., Ltd. and China Railway Science Research Institute Group Co., Ltd. CREC Capital Co., Ltd. acts as the agent of original creditors and asset service provider; CSC Securities Co., Ltd. serves as the plan manager; Deloitte Touche Tohmatsu Certified Public Accountants (Special General Partnership) and SH Certified Public Accountants are the accounting firms; CCXI Credit Rating Co., Ltd. acts as the rating agency; China Railway Group Limited, China Railway 5th Bureau Group Co., Ltd., China Railway Major Bridge Engineering Group Co., Ltd. and China Railway 3rd Bureau Group Co., Ltd. provide liquidity support.

China Railway Group Limited (CREC), headquartered in Beijing, is a large conglomerate covering survey & design, construction & installation, industrial manufacturing, real estate, resource utilization, financial investment and other emerging businesses. As one of the world's largest engineering contractors, CREC has been listed on the Fortune Global 500 for 20 consecutive years, ranking 43rd on the 2025 Fortune Global 500 list and 9th among China's Top 500 Enterprises.

Dacheng's Asset Securitization Team, led by He Yuhua (Partner), acted as special legal counsel and delivered comprehensive, professional and efficient legal services for the issuance. The team members include Li Shengyu, Zhang Shaoxin, Liu Min, Chen Fangzhi and Yang Ziye.