SSE Bonds｜Sci-Tech Innovation Bonds: Securities Firms Flock to Sci-Tech Board to Support Sci-Tech Innovation Development

Translated from Xinhua Finance, by Yang Yiren

After the People's Bank of China and the China Securities Regulatory Commission jointly issued an announcement to support financial institutions in issuing sci-tech innovation bonds, all parties in the market responded quickly, using the bonds as a link to accelerate the layout of cutting-edge and strategic emerging industries such as integrated circuits, artificial intelligence, new energy, biomedicine, and high-end equipment.

Technology-based enterprise innovation features a long R&D cycle and a large capital demand, and urgently needs long-cycle and cost-effective financial support. Expanding the array of sci-tech innovation bond issuers is an important measure to guide financial resources to gather in the field of sci-tech innovation.

Securities firms accelerate market entry

After the implementation of the new regulations, securities firms have accelerated their entry. As the first batch of participants, several leading securities firms such as CITIC Securities Company Limited, Guotai Haitong Securities Co., Ltd., and China Securities Co., Ltd. took the lead in issuing sci-tech innovation bond issuance announcements on the Shanghai Stock Exchange (SSE), involving a total scale of more than 16 billion yuan. Data shows that from May 7 to 9, a total of 60 fundraising entities announced the issuance of 68 sci-tech innovation bonds, with a total issuance limit of 119.605 billion yuan. Among them, financial sci-tech innovation bonds became the main increment. The first batch of 23 financial bonds involved 18 issuers, including China Development Bank, 5 commercial banks and 12 securities companies. The planned issuance amount accounted for 78% of the scale of sci-tech innovation bonds announced that week. On May 14, Soochow Securities Co., Ltd. issued 1.2 billion yuan of sci-tech innovation corporate bonds with a term of two years and a coupon rate as low as 1.74%, setting a new record low for the company's bonds of the same term. The funds raised will be used to enhance its ability to serve sci-tech innovation. Guolian Minsheng Securities Company Limited also successfully booked 500 million yuan of sci-tech innovation bonds on May 15, with a term of 3 years, a coupon rate of 1.89%, and a subscription amount of more than 5 times, demonstrating the market's high recognition of the field of sci-tech innovation.

Support for sci-tech innovation is running at full capacity

In fact, before being allowed to issue sci-tech innovation bonds independently, securities companies have long provided bond issuance underwriting services for technology-based enterprises. Since the launch of the pilot project of sci-tech innovation bonds in 2021, Guotai Haitong Securities Co., Ltd. has underwritten 580 sci-tech innovation bonds with an amount of 198.146 billion yuan and a market share of 14.54%, ranking third in the industry. For example, in April 2025, it underwrote China's first sci-tech innovation bond to support the development of Shanghai's three leading industries. A total of 3.06 billion yuan was invested in integrated circuits and other industries, accounting for more than 50% of the raised funds, promoting Shanghai to build an industrial innovation hub. In November 2023, the company underwrote China's first bond for "carbon neutrality + sci-tech innovation + rural revitalization". By building photovoltaic power stations in poverty-stricken areas, it promoted green emission reduction and rural revitalization. In 2024, China Securities Co., Ltd. underwrote 89.863 billion yuan of sci-tech innovation bonds, accounting for more than 5% of the total bonds underwritten that year. Since 2024, it has underwritten more than 100 billion yuan in total, contributing significantly to the development of sci-tech finance.

Multiple measures are taken to improve services

In the process of high-quality economic development, sci-tech finance is crucial to sci-tech innovation and industrial upgrading. In addition to issuing and underwriting sci-tech innovation bonds, how can securities companies further serve sci-tech enterprises? The relevant person in charge of CITIC Securities Company Limited made three suggestions: 1. to improve the service mechanism, build a full-process service system from project reserves to issuance and underwriting, set up a professional team to provide guidance to enterprises, and carry out capital market training; 2. to integrate professional resources, form a cross-professional service team, give full play to research advantages, and provide professional solutions for enterprises; 3. to actively practice and explore, design personalized financing plans according to corporate needs, ensure accurate market analysis and effective investor communication, and maintain a good image in the market. Through these measures, securities companies will be able to better promote the benign interaction between technology, industry and capital, and continue to empower the development of sci-tech innovation.

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