Recently, China Tianying Inc. issued the 23 TY GK private placement bonds with the mode of “Central-Local Cooperation-based Credit Enhancement”, which are the first marine technology innovation corporate bonds (blue bonds) issued on SZSE by a private enterprise. This is a practical measure of SZSE to conscientiously implement the Opinions on Promoting the Development and Growth of Private Economy issued by the CPC Central Committee and the State Council and thearrangements and requirements of China Securities Regulatory Commission (CSRC).

The issuance of the bonds was supported by China Securities Finance (CSF), Soochow Securities, and Nantong Zhonghe Financing Guarantee Group Co., Ltd.for credit enhancement in full.CNY 100 million was raised and the coupon rate was 6%. The proceeds raised from the issuance of the 23 TY GK, China's first sci-tech innovation bond in the marine field, will be used for building China's first gravity energy-based storage project - the “100MWh Gravity Energy Storage of Rudong County, Nantong City”. Clean resources such as offshore wind power and photovoltaic power will be stored in the form of Gravitational Potential Energy (GPE) to further improve the energy utility efficiency in Rudong and Nantong prefectures, and facilitate the protection and sustainable utilization of marine resources. This project will provide 100MWh electricity per day without consuming excess energy or increasing carbon emissions. Compared with coal-fired power generation, it is expected to reduce CO₂ emissions by more than 40,000 tons every year.

In recent years, according to the unified deployment of CSRC, SZSE has worked jointly with market entities, including CSF, securities companies, and local guarantee companies to continuously improve the bond financing supporting mechanism for private enterprises. Various measures have been taken to support bond financing and improve the financing environment for private enterprises.

First, deepening direct financing service and giving play to platform functions to support sound development of private enterprises.We made full efforts to support financing of private companies, having formulated a special work plan serving listed privately-owned companies and launched 16 specific measures. These measures have given further play to direct financing as the main channel and its role in optimizing resource allocation. We actively solved the difficultiesand urgent issuesof privately-owned enterprises listed in SZSE, and promoted the steady development of them with focus on their main businesses.In the first half of 2023, SZSE assisted private enterprises in raising more than CNY 200 billion via direct financing.There is an increasing number of privately-owned enterprises on SZSE focusing on their main businesses, with steady operation and high market value. There are 61 privately-owned enterprises each with a market value of more than CNY 50 billion. The number of privately-owned enterprises each with a market value of CNY 100 billion has increased from 0 in 2013 to 27 in 2023. A number oficons of newtheeconomy have emerged, including CATL, BYD, Mindray, etc., showing strong resilience and vitality.

Second, focusing on the financing demand of private enterprises and expanding bonds financing channels according to the actual conditions of private enterprises. We continuously encouraged private enterprises to issue various bonds and asset-backed securities and private enterprises in hi-tech industries and strategic emerging industries to issue new products such as sci-tech innovation bonds, carbon neutrality green bonds, and Intellectual Property-Backed Securities. High-quality private enterprises were encouraged continuously to issue infrastructure REITs products, so as to expand the financing channels of high-quality private enterprises. Up to now,there have been about CNY 22.2 billion of Intellectual Property-backed ABS,CNY 350 billion of private enterprise bonds with credit enhancement measures, and more than CNY 730 billion of ABS backed by accounts payable for the supply chain of core enterprises issued on the SZSE. Additionally,a number of REITs projects concerning private companies are in the pipeline. In this way, the financing for private enterprises has been supported through various channels: bonds, ABS, and REITs.

Third, strengthening the financing credit support of the private economy and reducing the financing cost of enterprises by credit enhancement and other means.Market institutions were encouraged and guided to work alone or jointly with CSF to provide credit enhancement support for private enterprises' bond issuance.  Since the special plan for bond financing of private enterprises was launched in 2022, credit enhancement has been applied to support the financing of many private ente rprises, such as Longfor Group, Country Garden, Sany Leasing, and Xinghe Industrial, reducing financing cost to a certain extent. The interest rates of multiple protected bonds or ABS expected yields are lower than those in previous periods.We support the use of Credit protection tools.We believe in concerted efforts and have opened up multiple channels to promote the bond financing of private enterprises. Up to now, a total of 129credit protectioncontracts and 20 certificates have been reached in SZSE bond market,involving CNY22.4 billion of financing by private enterprises.

Fourth, uniting market consensus to form a joint force for high-quality development of private enterprises. We took the lead in holding a number of business symposiums such as “The Symposium of Buy-Side Firms on Credit Protection Tools”, “The Symposium on Credit Protection Tools Further Supporting Private Economy”, “Improving Credit Support and Empowering Private Enterprises’ Financing”, and “Private Enterprises Focus on Main Businesses and Develop Steadily”. We made a series of surveys on private enterprises’ financing in Beijing, Qingdao (Shandong), Dongguan (Guangdong), Hangzhou (Zhejiang) and other places. We visited Midea Group,RSPC, CATL and other listed privately-owned companies. On-line discussions were held with more than 10 private companies, such as China Tianying, Jereh Group and JHCC. In addition, investigations were made on the experiences and practices of listed privately-owned companies focusing on their main business development, the difficulties they are facing, and their opinions and suggestions on the capital market supporting the high-quality development of companies.

Next, SZSE will conscientiously study and implement the spirit of meetings of the Political Bureau of the CPC Central Committee and the Opinions on Promoting the Development and Growth of Private Economy issued by the CPC Central Committee and the State Council. In accordance with the deployments and requirements of the CSRC, SZSE will work unswervingly both to consolidate and develop the public sector and to encourage, support and guide development of the non-public sector.We will step up efforts to serve the private economy, enhance the financing support mechanism for private enterprises through product and mechanism innovation and make it more convenient forhigh-quality private enterprises to financing,so as to better serve national strategies and the overall economic and social development.