Circular of the Shanghai Stock Exchange on Matters relating to the Pilot Program on the Public Issuance of Short-term Corporate Bonds
Circular of the Shanghai Stock Exchange on Matters relating to the Pilot Program on the Public Issuance of Short-term Corporate Bonds
Circular of the Shanghai Stock Exchange on Matters relating to the Pilot Program on the Public Issuance of Short-term Corporate Bonds
Shang Zheng Fa [2020] No.40
May 21, 2020
All market players,
In order to further expand the financing channels of enterprises, reduce financing costs, and meet the needs of corporate liquidity management, the matters relating to the pilot program on the public issuance of short-term corporate bonds are hereby notified as follows in accordance with such laws and regulations as the Securities Law and the Administrative Measures for the Issuance and Trading of Corporate Bonds, and related business rules of the Shanghai Stock Exchange (SSE).
I. An issuer that intends to apply for the public issuance of short-term corporate bonds and having them listed on the SSE shall have good capacity for debt repayment in the short term. During the pilot period, short-term corporate bonds will be publicly offered only to professional investors, and a company covered by the pilot program shall meet any one of the following conditions:
1. the issuer is governed by the SSE's optimized regulatory arrangement for corporate bond financing, and its average net cash flow for business activities in the most recent three years is positive or its quick ratio at the end of the most recent year is higher than 1;
2. it is a securities company with strong comprehensive strength and sound internal control and risk control systems; or
3.
......
Shang Zheng Fa [2020] No.40
May 21, 2020
All market players,
In order to further expand the financing channels of enterprises, reduce financing costs, and meet the needs of corporate liquidity management, the matters relating to the pilot program on the public issuance of short-term corporate bonds are hereby notified as follows in accordance with such laws and regulations as the Securities Law and the Administrative Measures for the Issuance and Trading of Corporate Bonds, and related business rules of the Shanghai Stock Exchange (SSE).
I. An issuer that intends to apply for the public issuance of short-term corporate bonds and having them listed on the SSE shall have good capacity for debt repayment in the short term. During the pilot period, short-term corporate bonds will be publicly offered only to professional investors, and a company covered by the pilot program shall meet any one of the following conditions:
1. the issuer is governed by the SSE's optimized regulatory arrangement for corporate bond financing, and its average net cash flow for business activities in the most recent three years is positive or its quick ratio at the end of the most recent year is higher than 1;
2. it is a securities company with strong comprehensive strength and sound internal control and risk control systems; or
3.
......