On January 16, the Shanghai Stock Exchange (SSE) held a commendation conference for outstanding institutions and individuals on the SSE bond market. A total of 32 outstanding institutions and 43 individuals were awarded at the commendation conference, which covered underwriting, trading, custody and business innovation of bonds and other aspects.
In 2016, the SSE bond market adhered to the thought of “focusing on both development and risk control”, implemented five development philosophies of “Innovation, Coordination, Green, Openness and Sharing”, supported the supply-side structural reform, and urged real-economy enterprises to complete the tasks of reducing production capacities, decreasing inventories, deleveraging, and lowering costs. According to the requirement of the China Securities Regulatory Commission (CSRC) for legal, strict and all-round regulation, the SSE vigorously strengthened the frontline regulation on market participants and the risk management on bond default and repurchase, thus playing a positive role in serving the real economy, lowering enterprises’ financing cost and preventing systematical risks. By the end of 2016, the SSE market had had RMB6.2 trillion bonds under custody and 8,077 bonds listed, with the total bond trading volume (including bond repurchase) of the whole year up to RMB225 trillion. Besides, green corporate bonds and asset-backed green securities, innovative start-up corporate bonds and renewable corporate bonds were steadily launched. In 2016, a total of 14 green corporate bonds and 3 asset-backed green securities were issued, with a total size up to RMB22.3 billion; 2 innovative start-up corporate bonds were issued with a total size up to RMB55 million; 11 renewable corporate bonds were issued with a total size up to RMB31.1 billion. Shanghai Government Bonds were issued on the SSE in 2016, with the first batch of issuance size up to RMB30 billion, which successfully explored a new way for issuing local government bonds by tender on a stock exchange and added a new issuance channel for such bonds.
The participating institutions on the SSE bond market have actively carried out business management on bonds and asset-backed securities. According to the requirement of “know your clients”, the institutions have strengthened investigation on due diligence of underwriting, reinforced internal risk control management, cemented bond custody management, and enhanced monitoring, alert and settlement of default risks. In addition, they innovated in the business of bonds and asset-backed securities, invested in and traded bonds, and maintained market order subject to regulatory oversight. Therefore, a number of excellent institutions and individuals have emerged. The business and risk management of institutions on bonds and asset-backed securities were highlighted in the appraisal for the commendation, and an award of “Excellent Custodian of Corporate Bonds” was added to encourage the institutions to enhance their business quality, compliance and risk control management, and improve their custody and risk management in the renewal period. The 32 awarded institutions are from the industries of securities, banking, insurance, fund and asset management.
It is hoped that the awarded institutions and individuals will cherish the honors and make greater achievements. All the institutions on the SSE bond market are expected to further consolidate their business foundations, put risk management on the foremost place, legally fulfill their duties, actively involve themselves into the SSE bond market according to the deployment of the CSRC and co-build a high-quality and high-standard SSE bond market.
Attachment: List of Outstanding Institutions and Individuals on 2016 SSE Bond Market (Chinese Version Only)
