Securities Times｜The First Batch of Securities Companies' Sci-Tech Innovation Bonds Issued! The Exchange Market Ushers in a New Wave of Sci-Tech Innovation Bond Issuance

Translated from Securities Times, Zhang Shuxian

On May 8, a Securities Times reporter learned that CITIC Securities Company Limited, Guotai Haitong Securities Co., Ltd., China Securities Co., Ltd., Huatai Securities Co., Ltd., China Merchants Securities Co., Ltd., Orient Securities Company Limited, Ping An Securities Co., Ltd., China Galaxy Securities Co., Ltd., Guolian Minsheng Securities Company Limited, and Huafu Securities Co., Ltd., along with several other securities companies, had released announcements on issuance of sci-tech innovation bonds on the Shanghai Stock Exchange (SSE). The total scale of bonds planned to be issued exceeded RMB 16 billion.

Information shows that funds raised from the first batch of securities companies' sci-tech innovation bonds will mainly be invested in cutting-edge technology and strategic emerging industries such as integrated circuits, artificial intelligence, new energy, biomedicine, and high-end equipment. This has unlocked medium- to long-term incremental funding for sci-tech innovation and further enhanced securities companies' capacity to support sci-tech enterprises in their financing needs.

On May 7, the SSE issued the Notice on Further Supporting the Issuance of Sci-Tech Innovation Bonds to Serve New Quality Productive Forces (hereinafter referred to as the "Notice"), aimed at promoting the expansion and growth of sci-tech innovation bonds through two aspects: the scope of issuers and the utilization of raised funds. That afternoon, market entities sought information about the business of sci-tech innovation bonds via emails, phone calls, and online channels. The SSE's hotline for "Three Opens (open-door review, open-door regulation, and open-door service)" services experienced high demand. Many market entities expressed that the "Notice" had further enhanced the appeal of financing through sci-tech innovation bonds, and that they would prepare for the issuance of such bonds under the new system.

Besides securities companies, other issuers such as technology enterprises and equity investment institutions have also shown an enthusiastic response. Among them, Sinopec Capital Co., Ltd. has announced plans to issue RMB 900 million of sci-tech innovation bonds, with the raised funds to be used for direct investment in technology enterprises in the fields of new materials, new energy, and intelligent manufacturing. Several other equity investment institutions are proactively preparing for the issuance of sci-tech innovation bonds.

In 2021, the SSE pioneered the pilot program for sci-tech innovation bonds across the entire market. As of now, nearly 300 companies have collectively issued over RMB 1 trillion of sci-tech innovation bonds on the SSE. Currently, SSE sci-tech innovation bonds have formed a separate sector, with all securities abbreviations marked with "K".

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