BIZCHINA / News |
Shenzhen firms propose joint bondBy Wang Lan (China Daily)
Updated: 2007-09-27 10:09 In an unprecedented move, 20 small and medium-sized enterprises (SMEs) in Shenzhen have proposed to jointly raise a total of 1.03 billion yuan in a bond issue. "Twenty SMEs in Shenzhen are expected to jointly issue bonds in mid-October," said Chen Fang, a senior executive at the Shenzhen Small and Medium-sized Business Center, an affiliate of Shenzhen government. "We have completed the preparation work for the bond issue."
Direct financing is of increasing importance to small enterprises as the cost of bank loans rises. The Shenzhen companies' proposed bond issue was approved by the National Development and Reform Commission, which has also approved a group of technology companies in Beijing's Zhongguancun Hi-Tech Zone to raise 370 million yuan by a bond issue. "Issuing bonds is a more convenient channel for small enterprises to raise capital," said Nie Wen, a fixed-income investment analyst with Industrial Securities. "The lower-cost financing channel would reduce small enterprises' dependence on bank loans and encourage them to improve their operations and management." |
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