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In order to resolutely implement the guiding principles from General Secretary Xi Jinping's important speech at the private enterprise symposium, earnestly put into practice the deployment of bond financing policies to support private enterprise using market-oriented methods by the CPC Central Committee and the State Council and alleviate the problem of financing difficulties and high financing costs for private enterprises, SZSE has actively researched and launched the credit protection tools under CSRC's guidance. This launch is of great significance for optimizing the investor structure in the bond market, improving the efficiency of corporate financing, and promoting the long-term healthy and stable development of SZSE bond market.
A notional principal of CNY130 million was involved in this launch. Suning Appliance Group Co., Ltd. and Zhejiang Hengyi Group Co., Ltd. were included in the reference entities, which for the first batch of credit protection tools, are leading private enterprises. These tools were simultaneously promoted with the issuance of corporate bonds in the primary market to achieve the purpose of enhancing investor subscription confidence, helping bond issuance, and reducing issuers' financing costs.
Participating institutions for this launch included Guotai Junan Securities Co.,Ltd. and CITIC Securities Co., Ltd. Etc, covering securities companies, fund companies and credit enhancement institutions. These credit protection tool sellers have relatively strong credit risk management capabilities. For the pilot, the form of credit protection contracts was adopted. That is, the trading parties signed contracts on a one-to-one basis and the tools involved are not transferable.
Next, SZSE will unswervingly implement the principles and policies of the CPC Central Committee and the State Council and always adhere to the "Two Unswerving Rules". According to CSRC's decision-making arrangements, SZSE will study and release rules related to credit protection tools as soon as possible to promote credit protection contracts and carry out the credit protection receipt business in a routine manner. Besides, we will give full play to SZSE's characteristics and advantages in serving private enterprises, innovative enterprises, and SMEs, broaden the financing channels of private enterprises, and continuously improve the risk prevention and control capabilities so as to protect the legitimate interests of investors, and create a good financing environment for the development of the private economy.
