Photo taken on August 30, 2010 shows the exterior of the People's Bank of China in Beijing, capital of China. (Xinhua/Xing Guangli)
BEIJING, May 31 (Xinhua) -- 16 Chinese commercial banks have issued 17 special financial bonds for small and micro enterprises as of May 29, totaling 137.5 billion yuan, reported Securities Daily citing data from Wind on Monday.
Among the 17 bonds, Everbright Bank issued the largest scale of 40 billion yuan. Bank of Beijing and Zheshang Bank issued 20 billion yuan, respectively.
Recently, the People's Bank of China (PBOC) issued a circular to promote the establishment of a long-term mechanism for providing financial services to small and micro enterprises, which suggested to increase the issuance of financial bonds and capital replenishment bonds for small and micro enterprises, actively carry out the securitization of credit assets, and expand diversified channels of credit funds.
PBOC promoted the long-term mechanism to reduce financing costs for small and micro enterprises. Issuing special financial bonds for those enterprises can not only provide banks with low cost and long-term stable funds, but also help improve the ability and willingness of commercial banks to serve small and micro enterprises, said Chen Hua, director of the Institute of Contemporary Finance at Shandong University of Finance and Economics.
In the future, the special bonds for small and micro businesses are still expected to be attractive. Commercial banks will have more funds available for loans to small and micro enterprises, and the PBOC's support tools for re-lending and inclusive loans will have more cost advantages, according to Yang Haiping, a researcher at the Securities and Futures Institute of the Central University of Finance and Economics and general manager of the Bank of Inner Mongolia's research development department.
(Edited by Gao Jingyan with Xinhua Silk Road, gaojingyan@xinhua.org)
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