On January 7, China Railway Group Limited(601390) , Sinochem International Corporation(600500) and other large industrial enterprises held investment and financing exchange activities on the Shanghai Securities roadshow platform of Shanghai Stock Exchange to promote corporate bonds.
In the process of online participation, the reporter further learned that in order to improve the service accuracy of industrial enterprises, the Shanghai Stock Exchange had held the relevant “industrial enterprise bond investment and financing fair” at the end of last year, hoping to eliminate the information asymmetry between the two sides, reduce the bond financing cost of industrial enterprises and smooth the financing channels through face-to-face communication between issuers and investors. The roadshow and exchange of a number of large industrial enterprises is also an important measure for the Shanghai Stock Exchange to innovate the service mode of the bond market and improve the quality and efficiency of serving the real economy, which is expected to boost the “good start” of bond issuance by industrial enterprises in the new year.
explore the long-term interactive mechanism to “close” the market players
The reporter learned that this corporate bond investment and financing exchange will be carried out simultaneously in Beijing and Shanghai by using the Shanghai Securities roadshow platform. Investors will participate in the whole process through online means, and meet the communication needs and epidemic prevention requirements at the same time.
Relevant investment and financing parties also participated in the exchange meeting, including China Railway Group Limited(601390) , China Communications Construction Company Limited(601800) , Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) , huadianfu new energy Co., Ltd., China Ocean Shipping Group Co., Ltd., Sinochem International Corporation(600500) , Shanghai Zhenhua Heavy Industries Co.Ltd(600320) and other large enterprises, as well as nearly 20 institutional investors such as banks, insurance, funds and securities dealers. The two sides had in-depth communication on the enterprise situation, bond issuance plan and issues of concern to investors.
The reporter of the securities times listened to the on-line roadshow in the whole process. In the promotion link, the bond issuer made a detailed introduction to its own business and financial status, development expectation and bond financing arrangements; In the subsequent interactive session, investors will directly ask questions about issues of concern, and then the issuer will answer them immediately. All parties actively share views and exchange experience, which is also expected to lay a foundation for in-depth cooperation in the future.
“The aroma of wine is also afraid of the depth of the alley. It is really necessary to take the initiative to promote it to a certain extent!” Some business participants told reporters that such investment and financing exchanges will help narrow the distance between issuers and investors, eliminate the gap, and effectively solve the problems of difficult and expensive financing of industrial enterprises. Even if the quality of the enterprise itself is high, it may not be fully reflected in the financing cost. Among them, the lack of understanding of investors is also one of the main reasons.
On the other hand, the investors attending the meeting also believed that the opportunity to fully exchange investment and financing in one place is also rare. They can investigate multiple high-quality issuers at one time, greatly reducing the cost of information acquisition. They hope that the exchange can organize more similar activities in the future to bridge the gap between high-quality industrial issuers and investors, so as to make more scientific investment decisions.
innovative service model accurately supports industrial enterprises
According to the reporter, since the end of last year, the Shanghai Stock Exchange has been committed to actively implementing the spirit of the central economic work conference, continuously building a platform for both investment and financing sides, building a communication bridge and opening up an information hub, and innovating a service model, aiming at promoting the sustainable and benign development of the industrial bond market.
Public data show that since 2016, the bond market of Shanghai Stock Exchange has focused on serving the real economy and has gradually developed into one of the main places for direct financing of enterprises. According to the reporter’s statistics, in 2021, the total amount of financing in the bond market of Shanghai Stock Exchange was 6.9 trillion yuan, including 3.79 trillion yuan of corporate bonds. At the same time, green carbon neutral bonds, innovation and entrepreneurship science and innovation bonds, short-term corporate bonds, credit protection tools and other product innovations have taken multiple measures to actively support the issuance of industrial bonds, which better meet the differentiated financing needs. In addition, it also optimized the audit team structure and set up a professional industrial debt group to enhance the professionalism and accuracy of the audit.
According to the analysis of insiders, industrial enterprises, especially industrial manufacturing enterprises, are the backbone of national economic development and need more market capital support. On the other hand, in-depth communication and the resulting deep understanding are an important basis for investment decision-making. According to the source, in early December last year, the Shanghai stock exchange held the “industrial enterprise bond investment and financing fair”. Practice shows that it is indeed helpful to eliminate misunderstandings and enhance consensus. As a good supplement to conventional information disclosure, it provides a more solid basis for investment decision-making.
Serving the real economy and industrial enterprises is the mission of the exchange bond market. The investment and financing exchange meeting provides an excellent platform for industrial enterprises to show themselves and convey confidence. It is reported that the Shanghai Stock Exchange will continue to explore and innovate the bond market service mode, improve the service level, and provide convenience for industrial enterprises to make good use of the exchange bond market; Guide intermediaries and investors to change their business ideas, take serving entity enterprises and implementing national strategies as their own responsibility, and truly concentrate financial resources in areas urgently needed by the country in the new development stage.
(source: Securities Times)
