The First Bailout Special Bond Planned to Be Issued on SZSE to Help the Steady Development of Private Enterprises

The First Bailout Special Bond Planned to Be Issued on SZSE to Help the Steady Development of Private Enterprises

The FINANCIAL -- On October 24, the 2018 bailout special bond issue announcement of Shenzhen Investment Holdings Co., Ltd. was released on the SZSE website, saying the one-billion-yuan volume to be issued by way of bookkeeping on October 26.

This is a specific measure taken by SZSE to earnestly implement the requirements of Vice Premier Liu He on the healthy development of the stock market. It is also the first bailout special corporate bond issued on SZSE.

According to the spirit of Shenzhen Municipal Government to promote the steady development of high-quality listed companies under its jurisdiction and to alleviate their liquidity risks, SIHC, as one of the main implementing bodies, has actively prepared for the establishment of SIHC Win-Win Equity Investment Fund (provisional name) under the leadership of Shenzhen State-owned Assets Supervision and Administration Commission (SASAC). This is to use the form of equity to resolve the risks of stock pledge of private listed companies.

SIHC will unite with social capital and other participants to set up the SIHC Win-Win Equity Investment Fund with the funds raised from the special bond. It will help ease the liquidity pressure of the actual controllers of Shenzhen-based private listed companies with a risk-sharing operation mechanism built in a market-oriented way.

The issuance of these special bonds by SIHC is an important part of making full use of the capital market’s financing function and broadening the channels for resolving the liquidity risks of private enterprises. The landing of such bonds has an important demonstration role. At present, many of the main implementing enterprises that undertake the responsibility of resolving the liquidity risks of private enterprises have a positive attitude towards it.

Adhering to the "Two Unswerving Rules" is a consistent policy of the CPC Central Committee and the State Council. Next, SZSE will unswervingly implement the national basic economic system and give full play to SZSE's characteristics and advantages in serving private enterprises, innovative enterprises, and SMEs under CSRC's unified deployment. Besides, SZSE will promote product innovation in the bond market and cooperate closely with local governments, financial institutions and other relevant parties to help private enterprises solve financing problems through various debt instruments and support their steady development.