Shanghai enterprises’ total debt financing exceeds 1 trillion yuan in past three months



(Yicai Global) June 1 — Shanghai’s bond market has played a key role in supporting the real economy during the recent Covid-19 outbreak, with companies based in the city raising CNY 1.07 trillion (16 billion) through debt financing in the interbank market over the past three months, according to the local branch of the central bank.

Financial institutions in Shanghai have actively reacted to the policies of the People’s Bank of China and stepped up assistance to businesses through bond financing. The Bank of Shanghai has granted a total of about 27 billion yuan in support to 21 companies since March by opening green channels and optimizing business processes, it told Yicai Global.

Shanghai Agricultural and Commercial Bank also helped 16 Shanghai-based companies issue 21.1 billion yuan of bonds during the Covid-19 outbreak. The bank also responded to the financing needs of businesses supplying basic necessities in mid-April when the outbreak was severe, and helped them resume production after the outbreak was brought under control.

Since March, Haitong Securities, a major brokerage firm based in Shanghai, has underwritten a total of nearly 45 billion yuan of various types of bonds in the city.

“The containment measures during the pandemic have posed many challenges to our projects,” said a source at the broker. “We have taken a diverse approach to continue serving the real economy, such as coordinating online roadshows for investors or moving book-entry locations to other cities to seamlessly integrate all processes. “

On April 29, the PBOC headquarters in Shanghai released 20 measures to support pandemic prevention and control as well as economic development. These measures called on financial institutions to increase bond financing for private enterprises, major industrial chain enterprises, science and innovation enterprises and manufacturing industries, while extending more credit to micro, small and medium-sized enterprises.

Publishers: Dou Shicong, Peter Thomas

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