Chinese authorities on Wednesday announced a series of encouraging procedures aimed at promoting the issuance of sci-tech development bonds.Experts think the relocation will bolster innovation enterprises by facilitating their access to much-needed funding.The announcement, collectively unveiled by the Peoples Bank of China (PBOC) and the China Securities Regulatory Commission, introduces initiatives to diversify the variety of sci-tech bond products and strengthen supporting mechanisms.According to the announcement, commercial banks, securities companies, and financial possession investment companies will be allowed to issue these bonds to expand the scope of qualified issuers.Other measures to be presented focus on enhancing bond issuance management, streamlining information disclosures, and enhancing the credit score system.The push reflects Chinas more comprehensive efforts to reinforce assistance for sci-tech business as it advances toward ending up being a global innovation powerhouse.
In March, China announced that it would introduce a sci-tech board in its bond market to promote the issuance of sci-tech innovation bonds by financial institutions, tech companies and private equity financial investment institutions.Preliminary figures from the PBOC reveal that nearly 100 market entities are preparing to release more than 300 billion yuan (about $41.7 billion) worth of sci-tech innovation bonds, with more participation expected in the future.