In order to further expand the financing channel of securities companies, and boost the standard development of exchange bond market, Shenzhen Stock Exchange (SZSE) and Shanghai Stock Exchange recently released Measures on Trial of Short-term Corporate Bonds of Securities Companies (hereinafter referred as Trial Measures), which allow securities companies and China securities financial limited liability companies that acquired the qualification of trial bonds issuance from China Securities Regulatory Commission (CSRC) to issue short-term corporate bonds.
According to the Trial Measures, short-term corporate bonds of securities companies refer to the corporate bonds issued by securities companies that aim for short-term financing, and are stipulated to repay the principals and interest within one year. Short-term bonds of securities companies adopt balance management, i.e., securities companies will decide the issuing time, duration, and scale of bonds of different trenches on their own discretion within the scope stipulated by CSRC after filing record to the exchange. Similar to the private placement bonds of small-and-medium-size companies, short-term corporate bonds of securities companies adopt strict investor appropriateness management system, narrowing the size of investors down to 200 per tranche. In respect of their specific record filing procedures, SZSE will refer to the relevant measures on private placement bonds of small-and-medium-size companies, and launch convenient electronic material filing declaration channel, which will guarantee that the Notice of Acceptance of Record Filing will be issued within 10 working days.
With the official launch of short-term bonds of securities companies, the variety of exchange private placement bonds that represent the market-oriented principle enriched, with exchange private placement bonds’ market scale increasingly expanded and market risk control mechanism more effective. As of October 14, 2014, 267 private placement bonds were issued in Shenzhen Market, raising 28.802 billion yuan, and 3 convertible private placement bonds were issued, raising 1.8165 billion yuan. Relevant principal from SZSE expressed that SZSE will continue to accelerate the building of innovative platform of fix-income products, and energetically probe into the innovation of variety of private placement bonds on the basis of strengthening the risk prevention and control, and further promote the steady development of exchange bonds market.