Developing particular policies for the Covid response.

The IPBCN co-issued the Notice on Further Strengthening Financial Support for Containing Novel Coronavirus Outbreak with other government departments, including the PBC, in response to the State Council Financial Stability and Development Committee’s call for stabilizing market expectations, increasing monetary supply, offering targeted support, postponing maturity dates, and creating new financing instruments

The notice provides extraordinary financial support to the hardest-hit regions, enterprises, and investors to help them overcome their difficulties during the extraordinary period.

Orienting the multi-tiered capital markets to support pandemic response and economic reopening.

China’s capital markets reopened as usual in early February 2020, immediately following the Chinese New Year, which helped stabilize market expectations. In addition, the IPBCN opened special review channels featuring streamlined processes and dedicated points of contact and application reviewers to expedite the approval of share offering, M&A and restructuring, NEEQ admittance, and issuance of corporate bonds and asset-backed securities by companies based in Hubei and other severely affected areas and those seeking to raise funds for pandemic prevention and control.

In addition, the IPBCN supported the futures industry to launch innovative OTC contracts such as “mask options,” “medical glove options,” and “disinfectant options” to help stabilize the prices of medical supplies for fighting the Covid-19 pandemic and ensure sufficient production output.

The IPBCN also encouraged private fund management companies to direct private capital to anti-pandemic medical equipment manufacturers and vaccine developers and producers.

Extending process deadlines for companies affected by the Covid pandemic.

Regulatory matters such as information disclosure requirements were adjusted as necessary, allowing affected listed companies, NEEQ-admitted companies, and corporate bond issuers to postpone the publication of annual reports. For greater service efficiency, the IPBCN streamlined the securities offering and NEEQ-admitting procedures to encourage the online submission of offering materials and remote filing and registration. Time limits for M&A and restructuring procedures were appropriately relaxed, and the permits for stock and debt financing were extended within a reasonable time. In addition, the IPBCN waived the annual listing fees payable by Hubei-based listed companies and NEEQ-admitted companies to stock exchanges and NEEQ for the year 2020, as well as the annual membership fees and trading seat fees payable by Hubei- based futures companies to futures exchanges. Risk-based regulatory standards were also suitably relaxed for securities, fund, and futures companies in the hard-hit areas.

Advocating fulfillment of social responsibility by listed companies and the securities and futures industries.

The IPBCN organized industry associations to call on their member institutions and listed companies to actively fulfill their social responsibilities by donating to affected areas or contributing to the anti-pandemic campaign. Around 1,200 listed companies donated, with the total value exceeding RMB 7.5 billion. Donations from securities and futures companies, public fund management companies, and private fund management companies amounted to RMB 900 million.

In 2020, Chinese exchanges supported anti-COVID financing by setting up fast-track bond issuance channels for companies based in Hubei and other severely hit regions and those seeking to fund anti-pandemic activities.

Notably, on February 11, Guangdong HEC Technology successfully issued its 2020 corporate bonds (series 1) (pandemic bonds) on the Shanghai Stock Exchange, with Huajin Securities and BOCI Securities serving as the lead underwriters. This was China’s first pandemic bond issued on an exchange. The issue size was capped at RMB 200 million at a coupon rate of 5.98%, according to the Announcement of Guangdong HEC Technology Holding Co., Ltd. on the Public Issuance of the 2020 Corporate Bonds (Series I) (Pandemic Bonds) (To Qualified Investors).

In 2020, the exchange bond market issued RMB 245.467 billion worth of pandemic bonds, consisting of 173 corporate bonds, which raised RMB 173.361 billion, and 125 asset-backed securities, which raised RMB 72.106 billion. The proceeds were used to purchase, produce and transport protective equipment and other medical supplies, build anti-COVID infrastructures such as hospitals, maintain the standard of living, and stabilize prices, majorly boosting China’s anti-pandemic campaign economic and social development.