In September 2023, Shandong Binda Industrial Group Co., Ltd. successfully issued a bond worth 7.1 billion yen overseas, with a coupon rate of 2.30%. Qilu Bank provided a standby letter of credit for this issuance. This marks Binda Group's first overseas bond issuance and sets a record for the largest single issuance of yen bonds by a local state-owned enterprise in Shandong Province.

In September, Jiangsu Hanrui Investment Holding Co., Ltd. successfully issued senior unsecured bonds worth 16.72 billion yen with a three-year term.

Zouping City Financial Development Group's First Overseas Bond Issuance is a Success

Recently, Zouping City Financial Development Group successfully issued its first overseas bond, marking a new breakthrough in Zouping City's direct overseas financing. During the bond issuance, the Financial Group meticulously planned and closely coordinated with underwriters and financial institutions. They prudently designed the issuance structure, carefully selected the issuance currency, and finalized the issuance pricing at an interest rate of 2.3%. The 7.6 billion yen overseas bond is the first foreign currency bond successfully issued by the Financial Group. This demonstrates the market's recognition of the group's operational capabilities, management system, and financial status. It's a significant step for the Financial Group in diversifying its domestic financing channels and opening up a "dual-track" source of funds.

Rizhao Urban Investment successfully priced a 5.66 billion yen overseas bond. Recently, with Guangyin International as the placement agent, Rizhao City Urban Construction Investment Group Co., Ltd. successfully priced a senior unsecured bond worth 5.66 billion yen with a three-year term. The bond will be listed on the China (Macau) Financial Asset Exchange Co., Ltd.

In August, Wuxi Nengda Thermal Power Co., Ltd. successfully issued a three-year bond worth 13billion yen. The bond, backed by a standby letter of credit from the Nanjing branch of Shanghai Bank, had a final coupon rate of 1.600%.

In July, Neitou Group Company successfully issued an overseas bond worth 10.5 billion yen (approximately 540 million RMB) on the Hong Kong Stock Exchange. With a three-year term and an interest rate of 1.4%, it was the first yen bond in the southwestern region, setting a new low for the issuance interest rate of yen bonds by local state-owned enterprises nationwide and a new high for the issuance scale.

On April 26th, Huatai International successfully assisted Ganyu City Development Group in issuing a three-year senior unsecured overseas bond worth 5.8 billion yen with an interest rate of 1.8%. This issuance marked China's first non-financial enterprise yen bond, as well as China's first green yen bond, standby letter of credit structured yen bond, and the first yen bond listed on the Macau Gold Exchange, providing a new financing solution for the overseas bond market.

The Evolution, Characteristics, and Insights of Japan's Bond Market Opening

In the context of China's expanding financial openness, Japan's bond market, as the world's second-largest, offers valuable insights.

Japan's Bond Market Opening Provides Valuable Lessons for China

Similarities in the Financial Systems of China and Japan: Both countries' financial systems were similar in their early stages of development. Both were bank-led in terms of financing methods. In the early stages of Japan's capital market opening, bank loans accounted for 50% to 70% of the total financing scale for enterprises, similar to China's current situation. Both countries' capital markets started as closed markets and gradually opened up over time.

High Degree of Openness in Japan's Bond Market: Since the 1960s, Japan has gradually opened its financial market. Its bond market has evolved from an initially closed state to a highly open one. From the issuance perspective, Japan's Samurai bonds and Euroyen bond markets have matured with clear rules and stable scales. From the investment perspective, Japan has removed all restrictions on Japanese institutions investing in overseas securities and foreign investors participating in the Japanese bond market.

Positive Outcomes from Japan's Bond Market Opening:

Promotion of Domestic Bond Market Development and System Improvement: In the early stages of Japan's bond market opening, its domestic market was not yet mature. The establishment of the Euroyen bond market attracted numerous issuers, creating a crowding-out effect on the onshore market. This led the Japanese government to reform its domestic bond market, enhancing its efficiency.

Advancement of Yen Internationalization: The opening of Japan's bond market and the internationalization of the yen have mutually reinforced each other. The bond market's opening expanded the use of yen-denominated assets, promoting the export of the national currency and its cross-border use, further advancing yen internationalization.

Tokyo's Emergence as an International Financial Center: The bond market is a crucial component of a country's financial system. As Japan's capital market became more transparent, free, and globalized, it helped Tokyo emerge as an international financial center.