Zhejiang to stick with bonds
By Lu Nengneng |
November 7, 2011, Monday
|
Print Edition
Print Edition
ZHEJIANG Province will continue to issue bonds to raise funds to help narrow financing shortfalls for companies amid a bank credit crunch and private lending default crisis.
The province tops China's corporate bond sales this year by raising 20.6 billion yuan (US$3.25 billion) through 19 bond issues by the end of October, the Zhejiang Provincial Development and Reform Commission told Xinhua news agency yesterday.
This year investors have injected 2.2 billion yuan into two bonds that aimed to finance private companies in Zhejiang - unparalleled in the amount raised and the number issued across the country.
The province has raised 67.5 billion yuan in 57 corporate bond sales since 2006. Under its 12th Five-Year Plan from 2011 to 2015, it will expand the structure of the bonds to further diversify its financing sources.
Zhejiang, together with Shanghai, Shenzhen, and Guangdong Province, has been approved by central government to issue municipal bonds on a trial basis.
On the corporate level, state-owned investment companies will use the bonds to fund infrastructure development while private companies will use them to facilitate more industrial upgrading.
For example, privately-held Geely Automobile, which acquired the Swedish brand Volvo for US$ 1.5 billion last year, has raised 1 billion yuan through a corporate bond issued in June to accelerate its core technology development.
China has been tightening policies to curb inflation this year, which has led to the credit crunch for private firms and unintentionally created a boom in private financing.
But the unregulated private lending has heightened fears the province may drive into a debt default crisis.
The province tops China's corporate bond sales this year by raising 20.6 billion yuan (US$3.25 billion) through 19 bond issues by the end of October, the Zhejiang Provincial Development and Reform Commission told Xinhua news agency yesterday.
This year investors have injected 2.2 billion yuan into two bonds that aimed to finance private companies in Zhejiang - unparalleled in the amount raised and the number issued across the country.
The province has raised 67.5 billion yuan in 57 corporate bond sales since 2006. Under its 12th Five-Year Plan from 2011 to 2015, it will expand the structure of the bonds to further diversify its financing sources.
Zhejiang, together with Shanghai, Shenzhen, and Guangdong Province, has been approved by central government to issue municipal bonds on a trial basis.
On the corporate level, state-owned investment companies will use the bonds to fund infrastructure development while private companies will use them to facilitate more industrial upgrading.
For example, privately-held Geely Automobile, which acquired the Swedish brand Volvo for US$ 1.5 billion last year, has raised 1 billion yuan through a corporate bond issued in June to accelerate its core technology development.
China has been tightening policies to curb inflation this year, which has led to the credit crunch for private firms and unintentionally created a boom in private financing.
But the unregulated private lending has heightened fears the province may drive into a debt default crisis.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
