In March, Non-Financial Enterprises Issued More Than 1 Trillion And 500 Billion Credit Bonds.

It has been more than a month since the implementation of the registration system.

From the first month of registration system in March, the issuance of credit bonds rose significantly.

Wind data show that in March, the non-financial corporate bond market issued 1610 corporate bonds, corporate bonds, medium-term notes, short-term financing coupons and directional instruments and other credit bonds, issuing a total of 1 trillion and 550 billion yuan, representing an increase of 101% over the February issue scale.

In fact, it is not only the role of the registration system in promoting the current market policy to guide broad currency, wide credit, and reduce the financing cost of the real economy.

"The market has been noticeable in this period. Under the background of policy support, the approval of the exchange has also been speeded up obviously. At present, the interest rate of the whole market is down, and the bond market is in a bull market. As interest rates continue to fall in the bond market (near the lowest level in 2016), not only are issuers willing to issue, but also investors are willing to buy, forming a booming market structure with both supply and demand. In April 10th, fan Wan Yuan, deputy general manager of fixed income financing headquarters of Shen Wan, told the business reporter in twenty-first Century.

Issue rebound

From the data point of view, in March, the largest number of credit bonds issued by non-financial enterprises were short-term financing coupons. A total of 605 issued were issued, with a total scale of 574 billion 900 million yuan. Secondly, corporate bonds were issued, with a total of 481 issued, with a scale of 449 billion 370 million yuan. Medium term bills, directional instruments and corporate bonds were issued 360 billion 570 million yuan, 109 billion 648 million yuan and 57 billion 450 million yuan respectively.

In contrast, the short-term financing coupons in February are still the largest scale of the issuance of non-financial corporate credit bonds, but the number of issued bonds was 390 yuan in the month, and the scale was 441 billion 770 million yuan. In February, the issuance scale of corporate bonds was less than 200 billion yuan, with only 161 billion 999 million yuan. In the same way, the issuance scale of corporate bonds in January was also less than 200 billion yuan.

In contrast, in March, the issuance scale of corporate bonds of non-financial enterprises surged to 449 billion 370 million yuan, an increase of over 177%. In the same period last year, the growth rate of corporate bonds issued by non-financial companies amounted to 89%, according to the issuance scale of 237 billion 673 million yuan.

Not only the scale of issuance has increased sharply, but also the interest rate of bond issuance has declined.

Wind data show that the weighted average coupon rate of corporate bonds issued by AAA in March is 3.51%, down 24 basis points from the weighted average in February. Since April, as of April 9th, the weighted average coupon rate continued to decline by 17 basis points to 3.34%.

On the basis of data from short-term financing bonds, the AAA rating and term average of the year March were 2.89%, which was 24 basis points lower than the 3.13% figure in February. Since April, as of April 9th, the weighted average coupon rate continued to decline by 39 basis points to 2.5%.

"In March, the NDRC and the SFC issued a notice to implement the registration system for issuing corporate bonds and corporate bonds, loosening the terms of issuance, leading to the issuance of the bond market, and also a clear signal for the vigorous development of the capital market. Registration system will shorten the period of enterprise debt issuance, cancel the link of provincial transfer report, etc., which will simplify the distribution process, increase the efficiency of issuing, raise the enthusiasm of issuers, and help expand the financing of corporate bonds. A bond underwriter in a large brokerage firm in Beijing said.

? ? ? ? However, this person also pointed out that "the abolition of various restrictions in the registration system will certainly bring about an increase in the supply of bonds, which may affect the bond market from the perspective of supply and demand. But it will also create a more difficult financing pattern for the strong Heng Qiang and private enterprises. Especially in the case of low interest rates, companies with good quality will definitely increase the scale of issuance and squeeze the market space."

Policy continues to overweight

In fact, the registration system is only part of the reason for the substantial increase in the issuance of credit bonds in March.

"Although the registration system has been promoted since March, the impact may not be so fast, and the continued increase in policy is a key factor in promoting the issuance of credit bonds." A credit rating agency analyst told the economic news reporters twenty-first Century.

In March 31st, the State Council executive meeting pointed out that "to strengthen financial support for small and micro enterprises in Inclusive Finance", and referred to relevant guidelines for financing credit debt market in detailed measures. Including guiding company credit bonds net financing increased by 1 trillion yuan over the previous year, for private and small and micro enterprises low-cost financing channels and so on.

Guotai Junan believes that to ease the entity credit risk, the bottom economy, the bond market is an important policy tool. After the Spring Festival, the impact of domestic epidemics and overseas outbreaks has made the real economy, especially small and medium enterprises, more stressed. The March 31st National Convention policy hedged a total of 3 trillion and 100 billion of the small and micro enterprises financing plan, including small and medium banks refinancing (rediscount) amount 1 trillion, small and micro financial bonds 300 billion, credit debt net financing 1 trillion and accounts receivable financing 800 billion.

Against this background, the growth of the issuance of credit bonds is a foregone conclusion. In order to cope with the impact of the epidemic, it will continue to guide the pattern of wide currency and wide credit.

On the other hand, from the feedback of front-line institutions, the impact of the current epidemic on the underwriting business is not obvious.

"At the level of bond projects, we were initially worried that we could not travel because of the epidemic situation, which would affect the production and declaration of materials, and many details of underwriting need to be carried out at the scene, including interviews with the issuers. But from the current situation, as the network office system is also more convenient, in fact, did not have a significant impact on the project's commitment, we should say that the overall situation is still very good. Fan told the economic news reporters twenty-first Century.

"In April, China will usher in an important policy landing window. On the one hand, monetary easing policy will continue, policy interest rates and even deposit benchmark interest rates may reduce interest rates or favorable bond markets; on the other hand, the magnitude of fiscal policy force is significantly greater than previous market expectations, or from bad mood to bond market. Before the final landing of the policy, the above factors will cause repeated fluctuations in the bond market. Haitong Fund believes.

Specific to the allocation strategy, a brokerage department's public offering fund fixed income director said in the interview, "the recent credit spreads have widened, indicating that the market is still more vigilant against credit sinks. In general, with the increase in credit spreads and taking into account the serious cash flow risk of some enterprises, the credit of high-grade credit is even better."

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