On April 12, the Shanghai and Shenzhen Stock Exchanges held the “Symposium on Credit Protection Tools to Support Private Enterprise Bond Financing”. Representatives from the China Securities Regulatory Commission, China Clearing Corporation, China Securities Finance Corporation and 13 securities companies related business lines attended the video conference.
The relevant person in charge of the bond department of the China Securities Regulatory Commission pointed out that the China Securities Regulatory Commission actively supports all parties in the market to play the role of credit protection tools in supporting the financing process of private enterprises, play the role of market-oriented credit enhancement, and encourage market institutions and policy institutions to create credit protection tools for Private enterprise bond financing provides credit enhancement support, launches combined credit protection contract business as soon as possible, facilitates the repurchase financing mechanism, and appropriately relaxes the access threshold for credit-protected private enterprise bond repurchase pledge vaults.
At the meeting, the Shanghai and Shenzhen Stock Exchanges respectively introduced the recent work in supporting the bond financing of private enterprises and the development of the credit protection tool business.
The Shanghai and Shenzhen Stock Exchange said that it will guide the market to restore investment confidence in private enterprise bonds through market-oriented credit protection tools, improve the financing environment of private enterprises, and help private enterprises develop healthily.
It is reported that the Shanghai and Shenzhen Stock Exchanges have always been committed to providing a fairer and smoother financing environment for private enterprises, and continuously improving their ability to serve the real economy. Since 2018, the Shanghai and Shenzhen Stock Exchanges have continued to actively explore and carry out pilot projects of credit protection tools, successively launched credit protection contracts and credit protection certificate businesses, and jointly launched the credit-protected bond pledged repurchase business with China Clearing. play an active role.
As of the end of March 2022, the Shanghai and Shenzhen Stock Exchanges had created 284 credit protection instruments, with a nominal principal of 15.856 billion yuan and a total of 78.009 billion yuan in support for bond issuance. Among them, 220 credit protection contracts were created, with a nominal principal of 11.734 billion yuan, supporting a total of 56.36 billion yuan in bond issuance; 64 certificates were created, with a nominal principal of 4.122 billion yuan, supporting a total of 21.649 billion yuan in bond issuance.
CITIC Securities, Guotai Junan, CICC and other participating securities companies made speeches one after another. The above-mentioned institutions stated that supporting the bond financing of private enterprises is a necessary move to serve the national strategy. The practice of “bond issuance + credit protection” shows that through this program, the bond issuance of related companies has achieved relatively good results, the financing efficiency has been significantly improved, and the financing cost has also been optimized to varying degrees.
Luo Dongyuan, vice president of Guotai Junan Securities, said that credit protection tools can effectively control credit risks, ease capital occupation, and optimize credit management for investors; more importantly, this business can improve the financing environment of small and medium-sized enterprises to a certain extent, and strengthen The goal of financial services for the real economy.
[Editor in charge: Cao Jing]