In order to further implement the CPC Central’s requirements on precise poverty alleviation and poverty elimination strategies and implement President Xi Jinping’s instruction on the role of capital market in supporting the battle of precise poverty alleviation, SZSE recently issued the Q&As on Poverty Alleviation Corporate Bonds of Shenzhen Stock Exchange (hereinafter referred to as the Q&As) according to the general requirements of the Opinions of China Securities Regulatory Commission on the Role of Capital Market in Supporting National Poverty Alleviation Strategies. The Q&As clarifies the specific institutional arrangements of the SZSE bond market to support the battle of precise poverty alleviation. It defines the establishment of long-term mechanism to support the enterprises in poor areas to effectively raise money via the SZSE bond market, thus enhancing the self-development abilities of the areas by way of market-oriented means.
Financial poverty relief is a crucial measure for winning the tough battle against poverty. The special bond embodies SZSE’s full support of the national poverty alleviation strategy, offering strong financial backing to win the battle. Through the Q&As? SZSE furthers its relevant efforts in the following aspects. First, to encourage and support the enterprises registered in key counties covered by the national poverty alleviation and development work, concentrated and contiguous poverty-stricken areas, and areas of extreme poverty and those who have real financing needs for precise poverty alleviation projects to issue poverty alleviation bonds. Second, to encourage and favor the use of raised funds in precise poverty alleviation projects in fields such as infrastructure construction, poverty alleviation and relocation and the poverty relief on industries, employment and ecological environmental protection. Third, to implement such supportive measures as review upon declaration, personnel-specific handling, and bond-specific review, arrange special personnel to take charge of the review of poverty alleviation bond projects, and further improve the efficiency of reviewing poverty alleviation bonds under the same conditions. At the same time, SZSE encourages issuing poverty alleviation bonds combined with special varieties such as green bonds and bonds issued by innovative companies and start-ups, and will provide more convenient and efficient reviewing channels for such issuers.
Since the poverty alleviation strategy is implemented, SZSE has seen a steady increase in the issue of poverty alleviation corporate bonds and asset-backed securities. By the end of this April, SZSE has issued a total of CNY10.9 billion of poverty alleviation corporate bonds and CNY6.935 billion of asset-backed securities, covering issuers in Chongqing, Sichuan, Guizhou, Hunan, Anhui, Guangxi, Shaanxi, and Yunnan and other cities in the Midwest, which has provided great support for the construction of infrastructure and livelihood projects in poverty stricken areas and promoted the development of real economy there. In the future, SZSE will continue to implement the guiding principles of the 19th CPC National Congress and the Central Economic Work Conference under the guidance of the China Securities Regulatory Commission, strengthen its responsibilities, leverages the strengths of the capital market, effectively prevent and control financial risks, and steadily push forward relevant measures to serve the poverty alleviation strategy with the bond market. SZSE will also increase its efforts to promote enterprises in poverty areas, poverty alleviation bond intermediary agencies and investors, and continue to fight the battle of poverty alleviation by giving full play to the role of the capital market.
