PBOC Establishes “Green Pipeline” for Issuance of Bonds by Chinese Financial Institutions During Coronavirus Outbreak
China’s central bank has flagged a raft measures to facilitate the issuance of bonds by Chinese financial institutions as part of efforts to stymie the economic impact of the novel coronavirus outbreak.
The People’s Bank of China (PBOC) recently announced that it would adopt multiple measures to support the issuance of various types of financial bonds, asset-backed securities and short-term financing bonds by financial institutions during efforts to combat the spread of the coronavirus.
These measures will include:
- Allowing financial institutions to issue bond application materials and electronic versions of filing materials by mail, as well as engage in the remote handling of bond issuance work.
- Delaying the effective period for financial bond quotas that have been approved or registered starting from 1 February.
- Encouraging financial institutions to issue bonds via remote auctioning.
- Allowing issuers to delay the disclosure of irregular information when issuers are unable to make disclosures due to the impacts of the coronavirus.
PBOC also said that it would establish a “Green Pipeline” for the issuance of bonds by financial institutions to raise funds that will primarily be directed towards disease prevention efforts, or that are situated in disease-affected areas.
The “Green Pipeline” will involve the use of specialist staff to perform preferential handling of issuance applications, as well as simplification of approval and registration procedures.