The First Innovative Corporate Bond Supporting Anti-Epidemic Is Given The Green Light To Issue


Monday, February 10, 2020   /05:19 PM  / By Mondovisione / Header Image Credit:  FT


On February 4, Wuhan Chedu Sishui Management Co., Ltd. ("Wuhan Sishui") received the letter of no objection from SZSE for its green project income corporate bond. This is the first innovative corporate bond of Hubei Province getting the green light after the novel coronavirus-caused pneumonia (NCCP) outbreak.


Wuhan Sishui mainly provides the services of investment, construction, operation and maintenance of the water-related affairs co-governance project in the Wuhan Economic & Technological Development Zone (WHDZ). The raised fund of CNY1 billion from the project will be used for flood prevention, drainage, sewage control, water supply protection and information platform development in the WHDZ, which is of great significance to improve the urban sanitation of Wuhan and promote the protection and optimization of the ecological environment. Wuhan, where Wuhan Sishui and its lead underwriter Changjiang Securities are based, is seriously stricken by the epidemic. The issuer and the project team overcame obstacles and put in extra hours to prepare sealed materials and submit them on the first trading day after the Spring Festival holiday. SZSE then accelerated the processing through a green channel and issued the letter of no objection the next day.


To further implement the requirements of the Notice on Further Strengthening Financial Support for the Prevention and Control of the Novel Coronavirus-caused Pneumonia of five ministries and commissions, the Notice on Extending the Time Limit for Approval of Corporate Bonds to Support the Prevention and Control of the Novel Coronavirus-caused Pneumonia of CSRC and the Notice on Supporting Listed Companies and Other Market Entities to Combat Novel Coronavirus-caused Pneumonia of SZSE, and according to the principles of "all for the prevention and control of NCCP"and "all for the smooth operation of the SZSE-listed companies", SZSE has made specific arrangements for the actual needs of fixed income market players in this special time. We have set up special service channels for business consultation, established a green channel for the review and approval of fixed-income products that will be mainly used for NCCP prevention and control or issued by enterprises in regions heavily stricken by the NCCP, and suspended computing the time limit for the relevant business. What’s more, we have extended the time limit for information disclosure of hardest-stricken enterprises, taken measures such as off-site business handling and made every effort to increase financial support to support the anti-epidemic effort.


The rapid approval of the corporate bond issue is a positive measure taken by SZSE to bring out the potential of the capital market and help enterprises overcome the epidemic. On the basis of the one-stop service for the issuance and listing of fixed-income products, SZSE will continue to support and assist issuers in hardest-stricken areas that have received approval, as well as such issuers and originators who raise funds or underlying assets for production, procurement and transportation of anti-epidemic materials to quickly launch and optimize financing arrangements. So far, the issuers from severe NCCP-stricken areas that have obtained approval include Changjiang Securities, Tus-EST, etc.


Next, SZSE will continue to implement the decisions and plans made by the CPC Central Committee and the State Council and act in line with the requirements of CSRC to give full play to the financing function of the capital market. We will strengthen the synergy with all financial sectors and work together with all fronts throughout the country to provide market players with flexible and considerate front-line supervision and market services. In addition, we will fully support enterprises in resuming production and operation as soon as possible, help them overcome the epidemic impact and make positive contributions to winning the battle against the NCCP.


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