LOCATION: SZSE English/ABOUT/News/SZSE News

By Channeling Funds to Serve Technology and Innovation, SZSE Helps Improve the Financial Product System to Support Innovative-driven Development --- SZSE Issues the Guidelines for the Business of Scientific and Technological Innovation Corporate Bonds

Date: 2022-05-24

To thoroughly implement the major decisions and plans of the CPC Central Committee for sci-tech self-reliance and self-strengthening at higher levels and conscientiously carry out the requirements for “promoting scientific and technological innovation so as to upgrade our industries” set forth in the Report on the Work of the Government for 2022, on May 20, SZSE released the No. 6 Guidelines for Innovative Variety Business of Corporate Bonds --- Scientific and Technological Innovation Corporate Bonds (hereinafter referred to as the “Guidelines”) based on the unified plan of China Securities Regulatory Commission (CSRC) and experience gained in the pilot work at an early stage, with a view to further smoothing the direct financing channels for scientific and technological innovation companies and improving the rules of the exchange-traded bond market to support scientific and technological innovation.

 

Main contents of the Guidelines are as follows. First, specifying issuers. The issuers of scientific and technological innovation corporate bonds include four types of enterprises: scientific and technological innovation, scientific and technological innovation upgrading, scientific and technological innovation investment and scientific and technological innovation incubation. Second, setting forth the requirements for using the funds raised. At least 70% of the funds raised by scientific and technological innovation upgrading, scientific and technological innovation investment and scientific and technological innovation incubation issuers shall be allocated to the scientific and technological innovation area, and a maximum of 30% can be used for industrial parks or incubation infrastructure. The funds raised by the above three types of enterprises can be used to invest in the equities of scientific and technological innovation companies, and play a bridge role of bonds of scientific and technological innovation companies in connecting creditor's rights and equity funds. At the same time, issuers of scientific and technological innovation corporate bonds are encouraged to use replacement funds for new investment in scientific and technological innovation to form an investment cycle, and the issuers at the core of the industrial chain are encouraged to use the raised funds to support upstream and downstream enterprises in the industrial chain. Third, refining information disclosure and professional institution verification requirements. The information disclosure requirements on the attribute of scientific and technological innovation, business development, the use of raised funds, etc. are laid out for different types of issuers. Lead underwriters and securities service institutions are urged to perform their responsibilities diligently and fulfill their verification responsibilities. Fourth, improving supportive measures. Special marks are used for market identification. Special review is implemented to improve the efficiency of issuance and listing review or confirmation of listing conditions. To enhance the flexibility of information disclosure, high-quality issuers are allowed to properly optimize relevant information disclosure in compliance with applicable regulations.

 

SZSE has always given high priority to supporting scientific and technological innovation and promoting high-quality development through innovation. In 2017, innovation and venture corporate bonds were rolled out. In 2021, under the policy framework of innovation and venture corporate bonds, the pilot work of scientific and technological innovation corporate bonds was launched to further strengthen the targeted support of the exchange-traded bond market for technology and innovation. Up to now, the issuance of innovation & venture and scientific & technological innovation fixed-income products in SZSE has exceeded CNY25 billion, effectively stimulating the vitality and momentum of innovation-driven development.

 

In the next step, SZSE will further support more market participants to make full use of the functions of scientific and technological innovation bonds, continue to improve the targeted support for supply of products, rules and services in the technology and innovation field, optimize the capital chain around industrial and innovation chains, consistently enhance the pertinence and effectiveness of services, and channel the efficient flow of funds to the technology and innovation area, so as to advance the high-quality circulation of technology, capital and real economy and push high-quality innovation and entrepreneurship to a new level through sci-tech self-reliance and self-strengthening at higher levels.