The corporate and enterprise bond market of the Beijing Stock Exchange (BSE) officially began trading at 9:30 am on Monday, which experts said is significant in reinforcing its capability to serve the real economy and national strategic initiatives.
Three enterprise bonds worth a total of 2.48 billion yuan ($345.7 million) were issued on the first day of trading, according to the BSE.
The bonds were well-received by the market, with participating subscription institutions covering various sectors-state-owned banks, commercial banks, securities firms, insurance companies and funds.
The issue amount of the "24 Jingzi 01" was 1 billion yuan, and it was 3.88 times subscribed.
The issue amount of "24 Jingtou 01" was also 1 billion yuan and it had a subscription multiple of 3.69 times. For "24 Zhidu 01", the issue amount was 480 million yuan, with a subscription multiple of 4.92 times.
As another milestone of the BSE's development, it only took 87 days for the corporate and enterprise bond business to be fully launched from rule publication to acceptance review, and from issuance underwriting to listing and trading. The market once again witnessed the "speed of the BSE."
The initiation of the bond market at the BSE contributes to the ongoing development and enhancement of China's capital market, Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Monday.
While the Shanghai and Shenzhen bourses have established bond markets, the BSE's move injects new vitality and shapes a more diversified market landscape, Wang said.
"The China Securities Regulatory Commission (CSRC) will work closely with relevant parties to strongly support the high-quality development of the BSE, and diligently advance the construction of the bond market at the bourse," Wang Jianjun, a vice chairman of the CSRC, said at the launch ceremony.
The CSRC will enhance supervision and risk control in the exchange's bond market and deepen its functions, so as to better serve the high-quality development of the real economy, and make greater contributions to building a modern capital market with Chinese characteristics, the vice chairman said.
The BSE has accepted 39 corporate bond issues with a total planned amount of 69.79 billion yuan. Of the total, 25 projects have a planned issuance amount of 1 billion yuan or more, accounting for 64 percent, according to the bourse.
The BSE focuses on serving innovative small and medium-sized enterprises (SMEs) and offering them new financing channels. SMEs can flexibly raise funds and support their growth by issuing bonds, Wang Peng said.
The BSE aims to meet market needs, further refine its market functions and offer a more comprehensive range of products for all market participants, BSE Chairman Zhou Guihua said at the launch ceremony.
The bourse has established a fundamental bond product system consisting of 10 special categories that include central government bonds, local government bonds, corporate and enterprise bonds, sci-tech innovation bonds and green bonds.
The establishment of the BSE has further improved China's multi-level capital market system. Developing in a complementary manner to the Shanghai and Shenzhen Stock Exchanges, it jointly serves enterprises of different types and at various developmental stages. This contributes to enhancing the overall competitiveness of China's capital market and its ability to serve the real economy, Wang Peng noted.
