An aerial drone photo shows a view of a mangrove wetland in Futian of Shenzhen, south China's Guangdong Province, Nov. 29, 2024. Covering an area of 56,000 square kilometers, which is less than 0.6 percent of the country's total land area, the Guangdong-Hong Kong-Macao Greater Bay Area generated an economic output exceeding 14 trillion yuan in 2023, roughly one-ninth of the national total. It stands as one of China's most open and economically dynamic areas, and is also among the regions with the highest economic development quality. (Xinhua/Liang Xu)
From the beginning of 2024 to April 6, 2025, the Shenzhen Stock Exchange supported 114 corporate bond issues by private enterprises, which raised 196.68 billion yuan ($26.89 billion), with 142 asset-backed securities issues that raised 91.82 billion yuan, the Xinhua News Agency reported on Sunday.
The exchange bond market serves as a key platform for private enterprises to raise money through bond issues. In recent years, to facilitate bond financing for private businesses, the Shanghai and Shenzhen stock exchanges have actively innovated financial products, strengthened investment-financing connectivity, and enhanced the convenience and accessibility of bond financing for private enterprises, per the Xinhua report.
Backing up bond issuance for the private economy is a key measure in providing financial support for its development, as encouraging direct financing for enterprises has been one of the key measures under the previous policy framework, said Li Changan, a professor at the Academy of China Open Economy Studies at the University of International Business and Economics.
As a crucial instrument of direct financing, bonds can effectively address the challenges of difficult and costly financing faced by the private economy, Li told the Global Times on Sunday.
In addition to supporting private companies' financing through bond issuance, Chinese financial institutions and localities have also rolled out dedicated measures.
In another move, the Postal Savings Bank of China has announced a commitment to provide at least 10 trillion yuan in financing to private businesses over the next five years, reinforcing its dedication to supporting the country's private sector amid economic headwinds, according to a separate Xinhua report on April 10.
Meanwhile, Shanghai in March announced 20 measures aiming to smooth financing channels for private enterprises. The measures set goals such as the growth rate of inclusive finance loans to micro-sized and small firms citywide exceeding the average growth rate of all loans, with the outstanding balance surpassing 1.5 trillion yuan, according to an official notice.
An official of the Shenzhen Stock Exchange said that the next step is to continuously improve the regulatory framework for corporate bond reviews, guide all parties to actively support financing for private enterprises, and enhance the credit enhancement support system for private enterprise financing, according to a Xinhua report on Sunday.
Li outlined aspects such as further lowering entry barriers and enhancing creditworthiness for private enterprises to address challenges in accessing the capital markets while stressing the importance of enhancing policy safeguards to support corresponding financing needs.
Global Times
