On January 17, the first government bonds in Guangdong Province in 2020 were successfully issued via the Ministry of Finance-SZSE government bond issue system. Those are local government bonds with the largest bidding bond quantity in a single stock market and the largest issue volume in a single batch and are another important achievement of SZSE in deepening service to the real economy and serving the Guangdong-Hong Kong-Macao Greater Bay Area and Shenzhen’s building of a pilot demonstration area of socialism with Chinese characteristics.
The government bonds of Guangdong Province include one general bond and 29 special bonds with maturity periods of 5, 7, 10, 15, 20 and 30 years, with a total volume of CNY132.668 billion. The funds raised will mainly be used in the infrastructure construction of the Guangdong-Hong Kong-Macao Greater Bay Area and a number of major projects in Guangdong Province including transportation, energy, agricultural and forest water conservancy, ecology, environmental protection, people’s livelihood and toll roads, which will help advance the infrastructure construction and undertakings concerning people’s livelihood of Guangdong. The underwriting syndicate, formed by 68 financial institutions, actively made bids, with a total bidding amount of over CNY2.3 trillion. The bid winning interest rates of the bonds with different terms were up 25bps from the benchmark. Securities companies in the underwriting syndicate bid for a total of over CNY1.4 trillion of the issuance and won CNY42.82735 billion, accounting for 32.28% of the total issue volume. The local government bond offering set a record for its kind in terms of the issue scale, the total bid amount and the number of bonds in a single issuance.
In recent years, SZSE has attached great importance, adopted various measures and made meticulous arrangements. To meet the diversified demands of government bond issuers, SZSE has provided customized services, continued to improve work procedures and strengthened issue services. On the one hand, based on the characteristics of each bond issuance, SZSE has actively communicated with the issuer on the issuance plan, made good preparations for the issuance and spared no effort to make organization and mobilize market participants. On the other hand, SZSE has made careful and full technology preparations and field guarantee, organized underwriting syndicate members to participate in the simulation testing in advance, and ensured procedures are smooth and in order and technology system is safe and reliable, so that issuance tasks and objectives could be completed and achieved with high quality.
At present, SZSE is continuing to improve the infrastructure of the bond market, actively serving local governments in investment and financing innovation and promoting the implementation of local bond ETF products, with the local government bond bidding and issuance covering 32 provinces, cities and autonomous regions. Next, SZSE will fully implement the guiding principles of the 2020 CSRC Working Conference, stick to the mission of serving the real economy, continue to improve quality and efficiency by providing all-round services, actively give play to the financing function and service advantages of the bond market under the new development philosophy, and continue to solidly promote the high-quality development of the SZSE bond market.