The Shanghai Stock Exchange (SSE) and China Securities Index Co., Ltd. (CSI) have recently announced the launch of the SSE Corporate Bond Index and the SSE Detachable Convertible Bond Index in late October, with an aim to comprehensively reflect the whole trend of the price fluctuation of corporate bonds and convertible bonds with detachable trade on the SSE, and to serve the investors as an analysis tool and a performance appraisal benchmark. Each index, the first of its kind, will exclusively indicate the price trend of the corporate bonds and the convertible bonds with detachable trade, respectively, on China's bond market.
By September 18, there had been 16 types of corporate bonds listed on the SSE and 6 on the Shenzhen Stock Exchange (SZSE), with the total financing amount up to RMB41.4 billion. With the successive listing of a number of corporate bonds issued by large enterprises, the scale of bonds on the stock exchanges will be increasingly expanded. Meanwhile, the convertible bonds with detachable trade (hereinafter shortened as the detachable convertible bonds), an innovative bond product issued since the end of 2006, is in rapid development, with 16 types of bonds on the SSE and 3 on the SZSE, witnessing the RMB85.3 billion total financing amount. Besides, both the corporate bonds and the detachable convertible bonds have seen active trading, with their total turnover from early this year till the end of August up to RMB70.2 billion, or nearly 70% of the total turnover of all enterprise bonds on the exchanges. Therefore, it is significant to independently reflect the conditions of the two types of bonds.
According to the published index scheme, the two indices are composed of the corporate bonds and the convertible bonds with detachable trade on the SSE and the SZSE. Their codes will be "000022" and "000023" respectively, with the same base day of December 31, 2007 and the same base point of 100.
Thanks to the governmental strategy for establishing a vigorous bond market in full swing, the corporate bonds and the detachable convertible bonds embrace a good opportunity, with more bond products to be developed. Undoubtedly, the timely introduction of the two indices will provide more references for investors' analysis and decisions on bond investment.
For the compiling methods and details about the SSE Corporate Bond Index and the SSE Detachable Bond Index, please refer to the websites of the SSE and the CSI.
