Recently, by giving full play to the geographic advantage of being located in the financial market of the Guangdong-Hong Kong-Macao Greater Bay Area and functions as an exchange information service hub, SZSE actively cooperated in the innovation in the issuance mechanism of municipal bonds, providing cross-border information display service to the governments of Guangdong and Shenzhen in their issuance of first offshore RMB municipal bonds. It is an active exploration and important practice of SZSE to implement in depth the CPC Central Committee’s decisions and plans on the development of the Greater Bay Area and improve the level of integration of the factor market of the Greater Bay Area with financial services.
Shenzhen and Guangdong governments went to Hong Kong and Macao on October 11 and 12 respectively to issue offshore RMB municipal bonds within the state-approved quota of municipal bonds, in an effort to open up new channels for financing. Shenzhen issued a total of CNY 5 billion worth municipal bonds in Hong Kong this time. Their terms include 2 years, 3 years and 5 years, and the coupon rates are 2.6%, 2.7% and 2.9% respectively. Guangdong issued a total of CNY 2.2 billion in Macao. Their term is 3 years and the coupon rate is 2.68%. As important financial infrastructure, SZSE has, according to the plans and requirements of China Securities Regulatory Commission on high-quality development of the bond market and high-standard bilateral opening up of capital markets and with the guidance and support of the Ministry of Finance, actively assisted in the bidding and issuance of those bonds. SZSE maintained good communication and cooperation with the local governments and implemented a number of major reform and innovation tasks concerning municipal bonds. The information display service launched by SZSE this time is to set up the “Cross-border Information Display” column on the official website of SZSE and display the information of products issued by local governments outside China’s mainland. This will provide a new information channel for domestic institutional investors with cross-border investment needs to learn more about quality municipal bond products.
SZSE will ground efforts in the Greater Bay Area and connect to the world. At the forefront of reform and opening up, SZSE will consciously place itself in the new development stage and apply the new development philosophy completely, accurately and comprehensively. SZSE will actively serve the fostering of a new development pattern, firmly deepen reform and expand opening up, and take solid steps to conduct market-based, law-based and international business innovation practices. In the meantime, SZSE will strengthen coordination and cooperation with domestic and foreign financial infrastructure and market participants, accumulate useful experience for the development of the bond market of the Greater Bay Area, and further promote the high-standard opening up and high-quality development of the capital market.