Guiyang pledges strong support for corporate bonds

The State-owned assets supervision and administration commission (SASAC) of Guiyang has taken decisive actions to support the State-owned enterprises under its supervision to issue bonds for fundraising.

The efforts aim to enhance enterprises' energy, control power, influence and anti-risk capacity, as well as to optimize the financial structure, broaden fundraising channels, prevent debt risk and boost quality development.

Guiyang SASAC has guided enterprises to increase the direct financing ratio, enhance economic viability, reduce fundraising costs and issue bonds following market-oriented principles.

This year, the supervised enterprises have issued new bonds worth 10.9 billion yuan ($1.58 billion), which helps broaden the enterprises' funding channels, ensure their production, operation and project construction, and make it easier and cheaper for enterprises to raise funds.

To encourage a 2-billion-yuan corporate bond issuance by Guiyang Transportation Investment Development Group Co, Guiyang SASAC worked hard to facilitate the group's communication with a securities firm, to study the problems concerning bond issuance.

Meanwhile, Guiyang SASAC has taken steps to solve bond issuance asset problems, proposing solutions to activate assets for a smart parking industrial investment company and urging the transportation group to strengthen communication with financial institutions and speed up bond issuance.

Guiyang SASAC will further encourage enterprises to innovate corporate financing modes and raise more funds for healthy development. It will also carry out measures to prevent and reduce debt risks, boost enterprises' transformation and development, and push them to contribute more to the city's economic and social growth.