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Recently, the Shanghai Stock Exchange (SSE) organized and held a symposium to support bond financing of private enterprises, during which it fully listened to the opinions and suggestions of private enterprises on further optimizing the bond financing support mechanism and guiding the precise support of financial resources for private enterprises' development. Representatives from nine private enterprises participated in the symposium and put forth constructive suggestions. The event was also attended by officials from the Department of Corporate Bond Supervision of the China Securities Regulatory Commission (CSRC), SSE, Shenzhen Stock Exchange (SZSE), and China Securities Finance Corporation Limited.
During the symposium, representatives from nine private enterprises including Zhejiang Geely Holding Group, Jiangsu Eastern Shenghong Co., Ltd., Wumart Group, Shanying International Holdings Co., Ltd., and Futong Group Co., Ltd. expressed that the corporate (enterprise) bond market is an important channel for direct financing of private enterprises, which helps companies optimize their debt structure, broaden financing channels, and enhance their image in the capital market. Since 2018, the CSRC and SSE have introduced a series of policies to support bond financing of private enterprises. Recently, many private enterprises have issued corporate bonds or asset-backed securities products, boosting confidence in the issuance of bonds by private enterprises. The participating companies also discussed common issues in bond financing of private enterprises and put forward suggestions on further optimizing the financing environment for private enterprises.
The SSE, SZSE, and China Securities Finance Corporation Limited respectively made presentation on measures to support bond financing of private enterprises. An official from the Department of Corporate Bond Supervision of CSRC pointed out that the private economy is an indispensable force driving China's economic and social development. It has become the main area for entrepreneurship and employment, as well as a crucial entity for technological innovation, playing a significant role in promoting the high-quality development of the national economy. We should unswervingly support and provide service for bond financing of private enterprises, and guide private enterprises to fully leverage various featured bond products such as sci-tech innovation corporate bonds, green corporate bonds, and REITs in their innovative development. Further efforts should be made on the support mechanism of credit enhancement for bond financing of private enterprises, effectively promote the "credit enhancement through central-local cooperation" model for private enterprise bonds as a routine work, and focus on improving the accessibility and convenience of bond financing for the private economy and small and medium-sized enterprises. Moreover, it is necessary to strengthen investor cultivation and market organization and construction, actively maintain a sound market ecology for private enterprises, and create a positive cycle for their financing.
In recent years, the SSE has continuously strengthened its support for bond financing of private enterprises by implementing multiple measures to expand market services and improve efficiency, deepen product innovation mechanisms, connect and guide both investment and financing sides, and strengthen industrial credit support, which has injected new vitality into private enterprises' bond financing. Moving forward, the SSE will thoroughly implement the spirit of the Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Economy. According to the unified deployment of the CSRC, the SSE will gather the efforts of all parties to speed up the implementation of policies and measures such as expanding the coverage of special support plans for debt financing of private enterprises, encouraging private enterprises to issue sci-tech innovation bonds, and improving the market-based risk-sharing mechanism for financing, thereby boosting the high-quality development of the private economy.
