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Promoting Market Innovation

 

Established registration mechanism for Non-financial Corporate Debt Financing Vehicles

 

NAFMII completed drafting of the Rules of Issuance and Registration for Non- financial Corporate Debt Financing Vehicles in the Inter-bank Market and Procedures on Registration for Non-financial Corporate Debt Financing Vehicles in the Inter-bank Market, which established the registration mechanism for Non-financial Corporate Debt Financing Vehicles (CP & MTN).

 

From April 15, 2008 to end of 2009, NAFMII organized 74 registration conferences and approved the registration of Non-financial Corporate Debt Financing Vehicles to the amount of more than 2021.93 billion RMB. By the end of 2009, the amount of CP & MTN issued reached 2525.28 billion RMB, and 1319.57 billion RMB are still outstanding.

 

Achieved smooth transition of CP management mechanism from filing with PBC to registration with NAFMII

 

NAFMII completed drafting of the Guidance of Commercial Papers Issuance for Non-financial Corporates, and made a good transition of commercial paper from PBC to the shelf registration with NAFMII.

From April 15, 2008 to end of 2009, NAFMII has approved the registration of CP with a total amount of 863.86 billion RMB. By the end of 2009, the amount of CP being issued reached 1661.82 billion RMB and 456.11 billion RMB are outstanding.

 

Launched the Medium-Term Notes (MTN)

 

NAFMII completed drafting of the Guidance of Medium Term Notes Issuance for Non-financial Corporates, and launched the Medium-Term Notes (MTN), a new non-financial corporate debt financing vehicles in China’s inter-bank market.By the end of 2009, NAFMII had approved the registration of MTN about 1156.8 billion RMB, and 862.2 billion RMB are still outstanding.

 

Innovation of MTN embedded with options

 

In 2009, NAFMII launched new types of MTNs. MTNs with call option, put option and floating rate MTNs have all been successfully introduced to the market.

 

Launched USD-nominated MTN

 

On May 11, 2009, Petro China issued the first USD-nominated MTN (1billion USD, 3 year), which is a significant innovation in the market. Until the end of 2009, the total registration of USD-nominated MTN is 4 billion USD, the total issued amount is 1 billion USD.

 

Established the China Bond Insurance Company

 

In September 2009, China Bond Insurance Company(CBIC) has been established by NAFMII and other inter-bank bond market participants. The establishment of CBIC made a big leap in consummating the structure of China’s inter-bank market. CBIC will play an important role in easing the financing pressure of the small-to-medium-sized corporates and in prompting the development of derivatives market. Meanwhile, it also helps to explore the diversification and sharing mechanism of credit risk.

 

Launched the Small & Medium Corporates Collective Note (SMECN)

 

On November 10, 2009, NAFMII launched a new type of MTN, Small & Medium Corporates Collective Note, which is an innovative financing vehicle tailored to SMEs. NAFMII has approved the registration of SMECN for 1.26 billion RMB.

 

Continue to promote product and institutional innovation

 

NAFMII will rely on the enthusiasm and creativity of the market members to promote the product and institutional innovation in the inter-bank market. NAFMII will continue to work on the new products and mechanisms, such as asset-backed note, asset securitization, RMB bonds by foreign institutions, private placement and credit rating mechanisms, and will introduce these products when they are ready.