Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, May 9 (Xinhua) — The first batch of science and technology innovation bonds was issued in China on Friday, marking the opening of a “science and technology platform” in the Chinese bond market.
The Beijing Financial Capital Exchange held a roadshow, attended by the first eight companies that issued scientific and technological innovation bonds on the interbank bond market.
The “science and technology platform” is designed to help financial institutions, science and technology enterprises and direct equity investment institutions issue science and technology innovation bonds, Pan Gongsheng, director of the People’s Bank of China (PBOC, the central bank), said in March.
According to a notice published by the Central Bank on May 7, such bonds include corporate bonds, enterprise bonds and debt financial instruments issued by non-financial enterprises.
Issuers are encouraged to apply flexible bond servicing terms and issue bonds with longer maturities, which will better suit the characteristics and needs of the scientific and technological innovation sector when using equity funds.
As Duan Dawei, Senior Vice President of iFLYTEK, noted, technology enterprises must remain committed to innovation, which requires long cycles, cost-effective solutions and a variety of financial instruments.
According to him, a series of innovative solutions presented on the “scientific and technical platform” of the bond market flexibly combine with the financing needs of scientific and technical companies and expand the range of financial support instruments.
According to preliminary estimates by the PBOC, nearly 100 market institutions are preparing to issue sci-tech innovation bonds worth over 300 billion yuan (about 41.7 billion U.S. dollars). More participants are expected to join the initiative in the future. –0–