BEIJING, July 24 (Xinhua) -- China centrally-administered state-owned enterprise (SOE) credit guarantee fund was inaugurated in Beijing on Thursday, in an effort to prevent and deal with bond risks of central SOEs, reported Xinhua Finance, a financial news platform run by Xinhua News Agency.
The fund, with an initial fund size of 10 billion yuan, was jointly launched and funded by China Reform Holdings Corporation Ltd., a piloting state-owned capital operator, together with 31 other central SOEs and aimed at raising 100 billion yuan in total via market-oriented financing.
By setting up the central SOE credit guarantee fund, a regular, standard and market-oriented central SOE bond repayment risk mitigation and resolving mechanism will be placed, good for further enhancing their capital security and much important to significantly improve their ability to resist risks, said Yuan Ye, vice chairman of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, the Chinese cabinet.
What's more, establishment of the fund will add to the confidence of China's capital market in the central SOEs and support their bond financing at home, noted Yuan.
The fund, deemed as a reserve fund to deal with bond repayment risks of central SOEs, will be operated and managed in accordance with such principles as limited bailout or remedies, emergency guarantee, risk controllability and market-oriented running to actively prevent risks and enhance overall credit of central SOEs. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
