SZSE Invites Bids for Underwriting the First CDB Discount Bond of the Exchange to Ensure the Smooth Issuance of Rate Securities during the Pandemic Prevention and Control

Date: 2020-04-03

On April 1, China Development Bank (CDB) successfully issued the 2020 Discount Bonds (1st Tranche) through the financial bond issuing system of SZSE. It was the first attempt of CDB to issue discount bonds on the exchange market, which will further improve the product structure in the exchange bond market.


During the prevention and control of COVID-19, SZSE, acting as the organizer and service provider of the bond market, adopted a combination of measures, and coordinated and cooperated with various parties. SZSE closely centered on demands of market players, made rigorous arrangements for bidding and issuance, and provided thoughtful services to successfully launch the CDB bonds and furnish market players with quality financial service.


This tranche of CDB discount bonds totaled CNY 3 billion, with the maturity of 178 days, issuing price of CNY 99.335 and yield rate of 1.3728%. The issuance won extensive attention and strong support from the financial market. An underwriting group of 50 financial institutions was active in the bidding, making an offer of CNY 14.42 billion in total and the bid-to-cover ratio was 4.81. Specifically, securities companies in the group bid for CNY 7.24 billion, with CNY 2.05 billion worth of bonds accepted, accounting for 68.33% of the total.


Since the outbreak of COVID-19, SZSE has earnestly implemented the requirements in the Notice on Further Strengthening Financial Support for the Prevention and Control of COVID-19 by the PBC and other four ministries and paid equal attention to pandemic preventing and control and stabilizing the market. Considering the trans-provincial staff flow involved in the bidding and issuance of policy financial bonds and local government bonds, we made arrangement for the fieldwork of rate securities issuance and formulated targeted management guidance for the onsite bidding venue regarding work flow, staffing, market organization, system operation and maintenance and onsite deployment and control. SZSE detailed the responsibility for pandemic prevention of each link, stepped up efforts in remote support and dispatched sufficient personnel to ensure the orderly implementation of the bidding and issuance in all stages, the health and safety of personnel, and steady operation of the system.


Next, SZSE will continue to follow the policies and decisions of the CPC Central Committee, the State Council and the CSRC, give full play to its function of direct financing, and strive to improve the service for rate securities issuance. We will also explore new market service modes, upgrade operation arrangement, and provide flexible and considerate frontline supervision and market services to take practical measures to support market players for the pandemic prevention and control and the resumption of work and production.

It was the first attempt of CDB to issue discount bonds on the exchange market, which will further improve the product structure in the exchange bond market.