December 24, 2018

Shanghai B&R Initiative bonds raise US$2.22b

By the end of last month, 10 Belt and Road bonds issued on the Shanghai bourse had raised 15.3 billion yuan (US$2.22 billion) to fund China’s massive infrastructure initiative.

China’s securities regulator in March granted domestic and overseas companies the rights to issue bonds through the Shanghai and Shenzhen stock exchanges to fund the Belt and Road Initiative.

Government-backed institutions in Belt and Road countries can issue such bonds in China.

This financial innovation is conducive to broadening the direct financing channels for projects along the Belt and Road and reflects the spirit that the financial sector serves the real economy.

The issuance of the bonds is also conducive for the further opening up of the domestic bond market.

Innovation in the financial sector also plays a major role in the China (Shanghai) Pilot Free Trade Zone to create more replicable achievements for deepening financial reform and serving the real economy throughout the country.

The Shanghai Financial Services Office yesterday unveiled the ninth batch of cases showcasing financial innovation in the city’s pilot free trade zone.

The next two years will be decisive in building Shanghai into an international financial center. Chen Minbao, vice secretary-general of the Shanghai government, vowed to promote the integrated development of industry, science and technology.

Cases showcased yesterday included the Philippine government’s inaugural issuance of panda bonds on March 20 — 1.46 billion yuan of yuan-denominated debt, underwritten by the Bank of China and Standard Chartered Bank.

And the newly launched international reinsurance platform by the Shanghai Insurance Exchange provides efficient and convenient cross-border funds clearing and settlement services for both domestic and foreign reinsurance enterprises through a free trade account.