In order to implement the decisions and plans made by the CPC Central Committee and the State Council on the tough battle of preventing and defusing risks, and further consolidate the policies and measures for supporting the healthy development of private enterprises, the Shanghai Stock Exchange (SSE) will, under the leadership of the China Securities Regulatory Commission (CSRC), vigorously advance the reform and innovation in the exchange-traded bond market, take various measures to ease the financing problems for private enterprises, and boost the healthy development of the private companies.
First of all, the SSE has introduced the special bailout bonds. Recently, local governments and industry associations have successively promoted the establishment of bailout funds and asset management plans to help the listed companies, which have good development prospects but are trapped in operational difficulties for the time being, to relieve the problem of equity pledge. In order to give further play to the supportive role of the bond market and expand the sources of funds, the SSE has launched a special bailout bond to support the relevant institutions in raising funds through the issuance of special corporate bonds and the products integrating stock and bond, and give full play to the role of the leading companies in the industries in industrial restructuring. Today the Beijing-based HKJ Group successfully issued a special bailout corporate bond on the SSE with an issuance size of RMB800 million, which will be mainly used to support the development of high-quality private technology listed companies and to alleviate the risk of equity pledge for the listed companies. In addition, other financial institutions and local state-owned enterprises involved in the bailout funds will also issue the special bailout bonds in the near future.
Secondly, the SSE will support the private enterprises in continued financing. The SSE will further improve the institutional arrangements for continued financing through corporate bonds, establish a special review mechanism, enhance the pertinence and efficiency of the review, help the private enterprises with normal production and good development prospects as well as short-term liquidity problems to apply for issuance of corporate bonds, and achieve the rolling and linkage of the debts on the basis of meeting the enterprises' demands for production and operation as well as debt management. In addition, the SSE will strengthen cooperation with local governments and financial institutions, give full play to the joint efforts of all parties concerned, deepen the innovation in bond products, and ease the liquidity pressure on private enterprises in a market-oriented manner.
Thirdly, the SSE will speed up the introduction of the credit enhancement tools. The SSE will adapt to the demand for market development, learn from the experience of the markets at home and abroad, give full play to the advantages and functions of professional institutions in risk identification and management, improve the risk sharing mechanism, and introduce credit enhancement instruments in the near future to make financing more accessible and affordable for private enterprises.
Going forward, the SSE will continue to implement the policy requirements of the CPC Central Committee and the State Council, follow the unified arrangements of the CSRC, adhere to the "Two Unwavering Points" (unswervingly consolidating and developing public ownership economy, and unswervingly encouraging, supporting, and guiding the development of non-public ownership economy), set up a green channel for reviewing the special bailout bonds, establish and improve the institutional arrangements for high-yield bonds and the products integrating stock and bond, enhance the supporting systems for the bond market, give better play to the role of the exchange-traded bond market in direct financing, and boost the long-term healthy development of private enterprises.
