In order to fully implement the spirit of the Party's 20th Congress, serve to build a new development pattern, and strive to promote the high-quality development of the bond market, the China Interbank Market Dealers Association (hereinafter referred to as the "Dealers Association") continues to improve the market self-regulatory management model with the registration system as the core, and actively promote the hierarchical and classified management of information disclosure in the debt financing instruments market. On February 24, a notice was issued on optimizing the pilot registration and discovery work of the "Regular Issuance Program" (FIP), further expanding the scope of pilot enterprises, establishing a dynamic adjustment mechanism that can advance and withdraw, and effectively enhancing the convenience and inclusiveness of information disclosure.

The pilot of the "regular issuance plan" is an active exploration and innovation of the dealers association to facilitate enterprise financing, optimize registration and issuance services, and promote the hierarchical management of information disclosure. Since the pilot was launched in April 2022, the "regular issuance plan" has greatly reduced the issuer's repeated information disclosure, helped investors improve the reading convenience, strengthened the issuer and the intermediary to return to the due diligence, and improved the quality of registration and issuance work. The majority of market members have actively welcomed the pilot expansion and called for a strong demand.

As of February 20, 2023, the "regular issuance Plan" has supported 41 enterprises to successfully issue 260 debt financing instruments with a total of 303.6 billion yuan using the "regular issuance plan" model, and the pilot enterprises include various types of enterprises such as central enterprises, local state-owned enterprises, and private enterprises (see the attached table). The covered varieties include medium-term notes, short-term financing bonds, ultra-short-term financing bonds, and targeted debt financing instruments. After the launch of this optimization and expansion initiative, more enterprises are expected to further enhance the convenience of information disclosure and registration and issuance efficiency through this mechanism.

According to the circular, the conditions that domestic enterprises should meet for piloting the "regular issuance plan" include: production and operation in line with national macro-control policies and industrial policies, and corporate governance is perfect; The disclosure of registered and issued information is mature, and within the last 24 months 1, the cumulative issuance of non-financial enterprise debt financing instruments is not less than 3 periods (including 3 periods); In accordance with the law and compliance, within the validity period of the annual report (usually one year), enterprises without information disclosure violations will be punished by the dealers association, investigated by the competent authorities or subjected to major administrative and criminal penalties.

In addition, domestic enterprises using the "regular issue plan" can independently choose whether to continue to use the "regular issue Plan" after updating their annual reports.

On the one hand, the optimization of the implementation of the Central Committee of the CPC Central Committee and The State Council on the development of inclusive finance, optimize the business environment, and serve the real economy decision-making and deployment, learn from mature market practices, eliminate total assets, asset-liability ratio and other financial indicators, and no longer require issuers to have high market recognition and significant industry status. Promote high-frequency issuers of different industries, qualifications and sizes to enjoy the convenience of the "regular issuance plan" system to better serve the needs of the real economy; On the other hand, it emphasizes the compliance requirements of issuers, upholds the principle of equal emphasis on regulation and development, highlights the encouragement of issuers who comply with regulations and disclose information, and issuers who violate the law and regulations shall not apply the "regular issuance plan" to promote the high-quality development of the interbank bond market.

The dealers Association said that in the next step, it will continue to optimize the hierarchical and classified management mechanism of information disclosure under the correct guidance of the People's Bank of China in accordance with the relevant decisions and deployments of the Party Central Committee and The State Council on the development of the bond market, constantly improve the self-discipline management framework of the interbank market, accelerate the construction of a multi-level bond market system, and better play the positive role of financial services to the real economy.

Responsible Editor: Yun Yang