Micro-and-Small Enterprise Bond Issuance Already Exceeds 83% of 2020 Target, Full Year Amount for 2019

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The latest data indicates that issuance of micro-and-small special finance bonds by Chinese banks has already well exceeded 83% of the annual target for 2020, as well as full year issuance for both 2018 and 2019.

21st Century Business Herald reports that as of 27 May 248.28 billion yuan in micro-and-small special finance bonds had been issued, equal to nearly 83% of the annual issuance quota of 300 billion yuan.

Data from Wind puts the issuance figure even higher, estimating it to be around 274.28 billion yuan as of 27 May.

Chinese central bank governor Yi Gang (易纲) recently said that since the COVID-19 outbreak it had adopted “innovative monetary policy tools” to increase the “accessibility” of enterprise finance.

One of these measures was support for financial institutions to issue 300 billion yuan in micro-and-small special finance bonds in 2020, to be specially used for the provision of loans to micro-and-small enterprises.

The China Banking Regulatory Commission (CBRC) first gave its approval to the issuance of micro-and-small special finance bonds in 2011.

The first issue took place in December of that year, with Industrial Bank Co. using the instruments to raise 30 billion yuan for small-enterprise loans.

Issuance levels fluctuated considerably during the period from 2012 to 2017, exceeding 150 billion yuan in 2012 yet dropping to under 50 billion yuan in 2017.

In 2018 issuance reached 215.1 billion yuan, while in 2019 it was at 204.8 billion yuan.

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