Flourishing Central SOE Products in SSE's Bond Market

Central state-owned enterprises (SOEs) are the important pillars of China's national economic development and important practitioners of various national strategies. In recent years, under the guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange (SSE) has taken various measures to enhance the strength, breadth and depth of its services to central SOEs, gradually building up a long-term mechanism for the capital market to support the high-quality development of central SOEs. It has carried out many useful explorations in the field of bonds and other areas and accumulated a number of good examples of assisting in the high-quality development of the real economy. It is reported that in November alone, central SOEs issued more than 70 billion yuan of various bond products on SSE, providing financial momentum for the development of the real economy.

In recent years, SSE has responded to the market demand in a timely manner, innovated the service mechanism, and implemented a series of measures in bond services for central SOEs, effectively enhancing the sense of achievement of issuers. In addition, SSE has continuously strengthened internal capabilities to meet the diversified needs for bond market financing of central SOEs. For example, Power Construction Corporation of China, Ltd. recently successfully issued the company's first 30-year ultra-long-term corporate bond. Moreover, China Yangtze Power Co., Ltd. issued the 180-day short-term corporate bond, which accurately met the company's short-term capital turnover needs. In addition to the traditional financing functions, SSE also paid high attention to supporting central SOEs to serve national strategies and to the growth needs of central SOEs. It is reported that this year, central SOEs have issued a total of 237.9 billion yuan of special varieties of bonds on SSE to serve national strategies, a year-on-year increase of 64.6%, and the main channel for raising funds to serve national strategies has been formed.

Compared with corporate bonds, enterprise asset securitization, relying on the cash flow of basic assets, is a financial product with independent asset credit characteristics, and is also an important tool to facilitate central SOEs financing. Among a number of securitization products issued recently, CCCC's holding-type real estate ABS of Jiangkou-Weng'an Expressway played an exemplary role. This single product raised 4.956 billion yuan, which is the largest holding-type real estate ABS issued in the current market, and also the first highway holding-type real estate ABS. In addition, central SOEs in the energy industry such as SPIC, CHINA HUANENG, CHD and CNNC issued a number of clean energy asset revitalization products, injecting new momentum into China's green development.

The relevant person in charge of SSE said that SSE's bond market will continue to gather market synergy, innovate the bond financing service mechanism for central SOEs, and help them achieve high-quality development.

From Xinhua Finance on December 26, 2024

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The above information is provided for reference purposes only and does not constitute investment advice.