China’s Securities Regulator Calls for Greater Support for Private Enterprise Bond Financing

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The China Securities Regulatory Commission (CSRC) has called for Chinese financial institutions to provide greater support to bond financing by the country’s private enterprises.

China’s securities exchanges recently issued the “Private Enterprise Bond Financing Specialist Support Plan” (民营企业债券融资专项支持计划), for the purpose of “stabilising and expediting private enterprise bond financing,” according to a statement made by CSRC on 11 May.

State-owned China Securities Finance will be responsible for implementation of the plan using its own capital, as well as working with bond underwriting institutions to support bond financing by private enterprises that “have markets, prospects, technological competitiveness, and that satisfy national industrial policy and strategy.”

The plan has already seen the launched of its inaugural project, with the provision of 100 billion yuan in support to the “GC Jing Dian 01” (“GC晶电01) bonds issued by JinKO Power Technology for rural village revival and carbon neutral solar power projects.

CSRC said that it will “continue to employ the active role of capital markets in supporting the development of private enterprise, and support and encourage more financial institutions to participate in the private enterprise bond financing specialist support plan,” for the purpose of “jointly driving the healthy development of the private economy.