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In order to implement the requirements at the 19th CPC National Congress and the overall deployment of the "Vision and Action of Propelling Joint Construction of the Silk Road Economic Belt and the 21 Century Maritime Silk Road (B&R)" co-issued by the National Development and Reform Commission, the Ministry of Foreign Affairs and the Ministry of Commerce, boost the financing for the B&R, and give full play to the role of the exchange-traded bonds market in serving the construction of the B&R, the Shanghai Stock Exchange (SSE), according to the general deployment made by the China Securities Regulatory Commission (CSRC), has further studied and promoted the B&R bonds, formulated and promulgated the "Notice of B&R Bonds' Soft Operation" (the Notice for short), and specified major systematic arrangement for the B&R bonds.
The main content of the Notice includes the following 4 aspects. First, the B&R bonds is defined. The B&R bonds include the government bonds issued at the SSE by governmental institutions in the countries (regions) along the B&R, the corporate bonds issued at the SSE by enterprises and financial institutions in the countries (regions) along the B&R, and the corporate bonds issued at the SSE by domestic and oversea enterprises with raised funds to be used for the construction of the B&R. Second, the regulatory arrangement for Panda Government Bonds is specified. Any government institution in the countries (regions) along the B&R, which wants to issue government bonds at the SSE, should submit an array of application documents including the prospectus of the bonds and the economy data report to the SSE before issuance. Third, the cross-border capital arrangement is specified. If any raised funds of the B&R bonds involve cross-border capital flow, the issuer should disclose the plan of raised funds' use and abide by the regulations of the relevant regulatory authority. Fourthly, supporting measures are specified as well. The SSE has arranged for its staff to handle the application for the B&R bonds and the relevant examination, set the section of the B&R bonds, and encouraged all investment agencies to invest in the B&R bonds.
The B&R construction is a major initiative to build a new situation for China's economy and fuel the common prosperity of the countries (regions) along the B&R. Under the leadership of the CSRC, the SSE has further implemented the decisions and deployments made by the CPC Central Committee and the Station Council, and made progress in fueling the capital market in facilitating the financing for the B&R and serving the B&R construction. In 2017, United Company RUSAL Plc (UC RUSAL) issued the first sum of Panda Bonds for the B&R on the SSE, which received great responses around all the countries. At the beginning of 2018, Hongshi Holding Group Co., Ltd. blazed the trail as it issued corporate bonds to raise funds for the B&R construction as a domestic enterprise. Recently, the SSE has negotiated with several countries along the B&R. An array of corporate bonds and asset-backed securities for the B&R are ready, and their issuance will provide capital support for the B&R construction.
Next, the SSE will continuously carry out the requirements at the 19th CPC National Congress, according to the deployment by the CSRC, boost the opening up of the SSE bonds market, further perfect the investment and financing mechanisms of the B&R and relevant detailed rules, continuously support the investment and financing by relevant institutions and quality enterprises both at home and in the countries (regions) along the B&R through the SSE bonds market, and actively propel the capital market to better serve the B&R construction.
