The Beijing Stock Exchange opened its corporate bond market on 15 January 2024 following testing of cash bond trading and clearing on 13 January.
The launch on the 15 January saw three issuers list bonds; Guangzhou Zhidu Investment Holding Group Co. (AA+), Beijing Infrastructure Investment Co. (AAA) and Beijing State-owned Assets Management Co. (AAA).
At the time of going to press on 18 January there had been eight transactions worth 34,978,600 Yuan (US$4,845,153). The series of operational tests ahead of the launch, which assessed both trading and post-trade capabilities, included participation from the Beijing Stock Exchange, National Equities Exchange and Quotations Corporation, China Clearing, Shenzhen Stock Exchange, and securities companies along with information providers, fund managers and their custodians, banks and insurance companies.
In a speech posted on the firms website, chairman Zhou Guihua said the firm had clear goals, “Promote the balance between investment and financing, optimise the investor suitability management system, support private equity funds to participate in secondary market transactions, expand the team of market makers, and vigorously enhance market activity; enrich market functions, take the opportunity of to launch the credit bond business, and further improve the market pattern of coordinated development of stocks and bonds.”
He also observed that that exchange, which only launched in 2021, had seen total financing of national and local government bonds exceed 3.92 trillion yuan over the previous year, while intermediaries had also generally increased their investment, with nearly 900 public fund products have participating in the investment on the Beijing Stock Exchange.
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