Business
22:33, 18-Aug-2017
Key China sectors supported by $33 bln in corporate bonds
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China's economic planner has approved over 220 billion yuan's (33 billion US dollars) worth of corporate bonds in the past two years to support key sectors, according to data released as the body announced the introduction of two new categories of bonds especially for the development of rural areas and social sectors.
The National Development and Reform Commission (NDRC) has been aiming to make investment more effective and shore up areas of weakness through issuance of special corporate bonds that have the advantages of low costs and covering long periods, NDRC spokesperson Meng Wei said on Friday.
National Development and Reform Commission spokesperson Meng Wei / China.com.cn Photo
National Development and Reform Commission spokesperson Meng Wei / China.com.cn Photo
Corporate bonds already issued
Enterprises have issued nearly 200 billion yuan’s worth of the approved corporate bonds since 2015 for nine sectors, including construction of urban parking lots and underground pipelines, according to Meng.
For example, 27 bonds had been used for 29 startups and innovation projects in eight provinces by the end of June, attracting investment of over 47 billion yuan, and creating 227,000 jobs and 14,000 patents.
Two new types of bond
The NDRC is now introducing corporate bonds to finance industry convergence in rural areas, and support projects in six social sectors including healthcare, pensions, education and training, culture, sports, and tourism, Meng said.
She explained that the corporate bonds are market-oriented, and their scale depends on applications from enterprises, with no cap set on them.
First blacklist in finance sector
The NDRC also released a list of over 300 companies and individuals in the finance sector blacklisted for reasons including bad debt, illegal fundraising and other illicit financial activities. It is available at creditchina.gov.cn.
The move comes as China's central government has tightened its grip in recent months on the financial sector to avoid more risks after years of credit expansion and the rise of leverage.
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