Guidance For Commercial Banks To Issue Supplementary Capital For Corporate Bonds

< p > China Securities Regulatory Commission and the China Banking Regulatory Commission jointly issued the "guiding opinions on commercial banks issuing supplementary capital of corporate bonds". < /p >
< p > to widen the commercial "a href=" //www.sjfzxm.com/news/index_cj.asp "/a" capital replenishment channel, the bond market is used to meet the innovation needs of commercial bank capital tools. The CSRC has fully communicated with the CBRC, and has listened widely to the opinions of all sides, drafted the guiding opinions on commercial banks' supplementary capital issuance of corporate bonds (hereinafter referred to as "Guidance Opinions"), and will jointly agree and implement the relevant work arrangements. The issuance of the guiding opinions has provided a system standard for commercial banks to expand capital replenishment channels, and is also conducive to the development and interconnection of bond markets. Commercial banks should stick to capital replenishment mechanism, which is mainly focused on endogenous capital accumulation, and carefully explore new capital instruments under the premise of improving capital quality. After the promulgation and implementation of the guiding opinions, eligible commercial banks may apply for the issuance of supplementary capital of corporate bonds in accordance with the regulations. < /p >
"P > < strong > guidelines for fifteen articles, including < /strong > < /p >.
< p > one is the issuer. The scope of the issuer currently includes commercial banks listed in Shanghai, < a href= "//www.sjfzxm.com/news/index_cj.asp" > Shenzhen stock exchange < /a >, domestic commercial banks issuing overseas listed foreign capital shares, and applying for the initial public offering of shares in the domestic commercial banks (hereinafter referred to as "listed or intended to be listed commercial banks"). In addition, the guidance also reserved room for broadening the scope of issuers. If the CSRC modifies the relevant provisions of the scope of corporate bond issuers, other commercial banks meet the conditions of issuers of corporate bonds, and can issue supplementary funds for corporate bonds in accordance with the guidance. < /p >
< p > two is the choice of capital tools. The "guidance" first launched commercial banks to issue corporate bonds containing reduced writedowns (hereinafter referred to as "write down debt"). At the same time, the guiding opinions stipulate that "supplementary capital for other types of corporate bonds issued by commercial banks shall be separately stipulated by the China Securities Regulatory Commission and the China Banking Regulatory Commission in accordance with laws and administrative regulations", so as to reserve space for other commercial banks to issue other types of innovative capital instruments. The issuance of debt reduction obligations by commercial banks should meet the requirements of corresponding capital attributes and increase the ability to absorb losses. < /p >
< p > three is issuing management. The guiding opinions stipulate that commercial banks that are listed or proposed to be listed should formulate feasible issuance plans, report the CBRC's capital property confirmation in advance, and obtain the CBRC's supervisory opinions and report it to the CSRC for approval and public issuance, or in accordance with the stock exchange's business rules for non-public issuance after filing. < /p >
< p > four is the arrangement of transaction mechanism and the management of investors' Appropriateness. In order to strengthen the risk management of debt reduction, the guiding opinions stipulate that < a href= "//www.sjfzxm.com/news/index_cj.asp" > stock exchange < /a > should be differentiated according to the size and level of credit of issuers, and the corresponding management system of investors' appropriateness should be established, and the risk control mechanisms and measures should be improved. < /p >
< p > five is the risk prevention mechanism and measures. In view of the special nature of corporate bonds as a capital instrument, especially the fact that the write down clause brings certain investment risks, the guiding opinion stipulates that the issuer should fully disclose the special attributes and risk items of the debt reduction instruments as capital instruments in the prospectus, give special hints to the reduction clauses and their triggering events in the prominent position of the prospectus, and make full explanations for the risk items that stipulate the compensation terms and their impact on investors' rights and interests. < /p >
< p > six is the regulatory arrangement for non-public offering. In view of the fact that non-public offering is limited to qualified investors with corresponding risk identification and bearing capacity, the guiding opinions clearly specify that there is no administrative license for non-public issuance, and that the stock exchange shall be archival and managed. Specific authorized stock exchanges shall, in accordance with relevant laws and regulations and "guiding opinions", separately stipulate the procedures of filing, information disclosure requirements, transaction mechanism arrangement and investor's appropriateness management requirements for non-public offering, and report to the CSRC for approval. < /p >