BEIJING, May 9 (Xinhua) -- China's first batch of sci-tech innovation bonds debuted Friday, indicating the inauguration of its "sci-tech board" in the bond market.
A roadshow was held at the Beijing Financial Assets Exchange, featuring the first eight firms to issue sci-tech innovation bonds in the interbank bond market.
The "sci-tech board" aims to facilitate financial institutions, technology enterprises and equity investment funds in issuing sci-tech innovation bonds that support scientific and technological innovation, said Pan Gongsheng, governor of the People's Bank of China (PBOC), in March.
These bonds encompass corporate bonds, enterprise bonds, and debt financing instruments issued by non-financial enterprises, said a notice issued by the PBOC on Wednesday.
Issuers are encouraged to adopt flexible bond terms and to issue longer-maturity bonds, thereby better matching the characteristics and demands of fund utilization in the field of sci-tech innovation, it said.
Technology-driven enterprises must adhere to innovation, which requires long cycles, cost-effective solutions, and a diverse array of financial tools, said Duan Dawei, senior vice president of iFLYTEK Co., Ltd.
The "sci-tech board" is flexible to align with the financing needs of tech companies, enriching the types of financial support tools, he said.
Nearly 100 market institutions are preparing to issue more than 300 billion yuan (about 41.7 billion U.S. dollars) worth of sci-tech innovation bonds, with further participation expected in the future, according to the PBOC.
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