CHINA has introduced a programme to help private companies raise funds via corporate bond sales, as it seeks to boost confidence in the sector to support the economy.
Four private companies issued bonds on Tuesday (Jul 2) through the covered bond programme, an interbank lending watchdog said, including Sichuan Kelun Pharmaceutical, Jointown Pharmaceutical Group, Shanghai Yuyuan Tourist Mart Group and Qitan Technology. The covered bond programme allows private firms to use different kinds of “soft” collateral, including intellectual property rights, equity and accounts receivable, in addition to real estates or land-use rights.
The programme will include more private enterprises in the future, the National Association of Financial Market Institutional Investors, or Nafmii, said. Companies including Tasly Pharmaceutical Group and Hongdou Group are also working on such issuance.
China recently has been making efforts to boost confidence among private entrepreneurs. Earlier this year, the government began drafting a law focused on the private sector that aims to protect property rights and the interests of entrepreneurs, state media reported. BLOOMBERG
