Securities Times｜Shanghai Stock Exchange Leverages Sci-tech Innovation Bonds and STAR ETFs to Actively Contribute to a Significant Chapter in Fintech

Recently, the China Securities Regulatory Commission issued the Implementation Opinions on Enhancing Capital Market's Efforts in the Areas of Technology Finance, Green Finance, Inclusive Finance, Pension Finance, and Digital Finance, proposing new measures including optimizing the bond issuance and registration processes for sci-tech innovation companies, compiling new science and technology innovation indices, and developing science and technology innovation-themed funds. In recent years, Shanghai Stock Exchange (SSE) has taken multiple measures to actively contribute to a significant chapter in the Fintech field through sci-tech innovation bonds, STAR ETFs, and other tools.

As early as 2022, SSE took the lead in launching sci-tech innovation corporate bonds, intensifying support through improving the system, strengthening connections, and linking the market. In December 2024, SSE refined the supporting listing review guidelines, expanded the scope of sci-tech innovation investment and issuers, including those in the incubation phase of sci-tech innovation, and clarified the optimized listing and disclosure rules for sci-tech innovation bonds issued by high-quality enterprises. For example, for China Railway Signal & Communication Corporation Limited, a green financing review channel was adapted. The company has efficiently issued 2.5 billion yuan renewable sci-tech innovation corporate bonds, becoming the first central SOE to issue sci-tech innovation bonds on the SSE STAR Market. SSE has steadily expanded the scale of sci-tech innovation bonds. In 2024, with its support, multiple high-quality enterprises issued sci-tech innovation bonds totaling 510.55 billion yuan, reflecting a 68% year-on-year growth. The issuance of mid and long-term sci-tech innovation bonds accounted for nearly 60% of the entire market. At the same time, SSE has improved the market-making mechanism. By the end of 2024, the number of benchmark market-making sci-tech innovation bonds reached 131, with a total value of 317.1 billion yuan. Looking ahead, SSE will continue to “set up the platform” to support sci-tech innovation enterprises in accessing the green channel, and strengthen information disclosure and investment-financing matchmaking to attract "patient capital" and reduce financing costs.

In terms of enriching the STAR ETF product line, by the end of 2024, 38 STAR Market ETFs had been listed on the SSE, with a total scale of nearly 250 billion yuan, covering broad-based, industry-themed, and strategy indexes. The SSE STAR Market has built a multi-level broad-based index system, with 13 ETFs themed in segmented industry listed, amounting to nearly 30 billion yuan in scale. In 2023, STAR Growth ETF was launched as the first sci-tech strategy index ETF, with an issuance size of 2.2 billion yuan. Going forward, SSE will continue to implement the "Eight Measures," enrich its product chain, guide medium- and long-term funds into the market, cultivate rational investment concepts, and foster a healthy index-based investment ecosystem.

Translated from Securities Times on February 13, 2025

See full article at: https://h5.stcn.com/pages/detail/detail?id=1525396&jump_type=reported_info

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