SSE Takes Multiple Measures to Support Financing for Private Enterprises

Private enterprises are a crucial component of China's national economy. As the development of the private economy faces challenges, how to support the financing of private enterprises has become a key area of focus. On February 21, 2025, HEC, a leading private enterprise in the entire electrode foil supply chain, successfully issued corporate bonds worth 500 million yuan on the Shanghai Stock Exchange (SSE) with a coupon rate of 4.7%. The raised funds will be used to repay the company’s interest-bearing debts and reduce the cost of its existing debt.

The SSE has consistently supported private enterprises in raising funds through the bond market. In 2024, more than 100 private enterprises raised over 220 billion yuan through bond and asset-backed securities (ABS) financing on the SSE. Leading private enterprises from various industries, including Sany Leasing and TBEA, successfully secured financing and created a positive demonstration effect.

In terms of institutional mechanisms, the SSE has introduced a series of innovative products and systems. By leveraging the advantages of products such as sci-tech innovation bonds, optimizing institutional arrangements, and promoting the establishment of the industrial bond credit enhancement mechanism as well as the full-chain service system, the SSE has enhanced the convenience and accessibility of bond financing for private enterprises. Additionally, the SSE has refined the issuance system for well-established issuers, adding five leading private enterprises, including Huawei and Zhejiang Rongsheng, to the list, thereby providing more efficient review and issuance services.

In terms of innovative product application, the development of asset-based securities (ABS) has expanded financing channels for private enterprises. In January 2025, Sany Leasing established an Asset-Backed Special Plan on the SSE, issuing 1.01 billion yuan, which benefited numerous downstream private enterprises and individual businesses. Since 2021, Sany Leasing has issued 15 ABS products, totaling 17.704 billion yuan. Additionally, public infrastructure REITs have played a positive role. JD Warehouse REIT and Harvest Wumart Consumption REIT have been listed on the SSE, providing examples of capital market support for the development of private enterprises.

In order to address the financing obstacles faced by private enterprises, the SSE has leveraged its role as a platform builder and strengthened the matchmaking between investors and issuers. It has established roadshow communication platforms and hosted multiple online roadshows for private issuers through the SSE Roadshow Platform. By organizing investment institutions to participate in these interactions, the SSE helped to bridge the information gap between the financing and investing sides. The SSE has also introduced market-making mechanisms, and included corporate bonds issued by private enterprises into the benchmark market-making basket in an attempt to enhance the secondary market liquidity. For example, Hongshi Group's roadshow attracted numerous investment institutions, while Geely Holding's sci-tech innovation bonds were included in the benchmark market-making basket, reducing the company’s financing costs.

Moving forward, the SSE will firmly implement the decisions of the CPC Central Committee and the State Council on supporting private economy development and serving the real economy. By focusing on the high-quality development of the bond market, the SSE will strengthen the credit enhancement support system for private enterprise financing and guide market participants to support the issue, ensuring that the bond market becomes a vital source of funding for the private economy.

Translated from Shanghai Securities News on February 24, 2025

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