Announcement by the People's Bank of China and the China Securities Regulatory Commission.

The Third Plenary Session of the 20th Central Committee of the Communist Party of China clearly proposed that it is necessary to accelerate the construction of a multi-level bond market and build a science and technology financial system that is compatible with scientific and technological innovation. Recently, the People's Bank of China and the China Securities Regulatory Commission jointly issued an announcement on matters related to supporting the issuance of scientific and technological innovation bonds (Announcement No. 8 of the People's Bank of China Securities Regulatory Commission [2025], hereinafter referred to as the "Announcement"). The "Announcement" is an important measure to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee. It is conducive to broadening the financing channels for scientific and technological innovation enterprises, guiding the bond market to invest early, small, long-term and hard technology, stimulate the driving force for scientific and technological innovation and market vitality, and help cultivate new quality productivity.

The "Announcement" proposes several measures to support the issuance of science and technology innovation bonds from the aspects of enriching the product system of science and technology innovation bonds and improving the supporting support mechanism of science and technology innovation bonds. It mainly includes: First, support financial institutions, technology-based enterprises, private equity investment institutions and venture capital institutions (hereinafter referred to as equity investment institutions) to issue technology innovation bonds. Technology innovation bonds include corporate bonds, corporate bonds, non-financial corporate debt financing tools, etc. Second, issuers can flexibly set bond terms and encourage the issuance of long-term bonds to better match the characteristics and needs of funds in the field of science and technology innovation. The third is to provide convenience for technological innovation bond financing, optimize bond issuance management, simplify information disclosure, innovate credit rating system, and improve the risk distribution and sharing mechanism. Fourth, include science and technology innovation bonds in the quality and efficiency evaluation of science and technology financial services in financial institutions. Fifth, places with conditions are encouraged to provide support measures such as interest subsidies and guarantees.

In the next step, the People's Bank of China and the China Securities Regulatory Commission will continue to improve the supporting support mechanism for scientific and technological innovation bonds, guide bond funds to invest more efficiently, conveniently and at low cost in the field of scientific and technological innovation, and enhance the bond market's ability to serve scientific and technological innovation.

Today, when attending a press conference of the State Information Office, Pan Gongsheng, Governor of the People's Bank of China, said that in the early stage, the People's Bank of China, together with the China Securities Regulatory Commission, the State Administration for Financial Regulation, the Ministry of Science and Technology and other departments, actively prepared to launch the "Technology Board" of the bond market to support three types of market entities, including financial institutions, technology-based enterprises, and equity investment institutions, to issue technology innovation bonds. At the same time, in view of the characteristics of technology-based enterprises and equity investment institutions, the institutional arrangements for issuance and transactions, information disclosure, credit ratings, etc. of technology innovation bonds have been improved, and a supporting rule system that is compatible with the characteristics of technology innovation financing has been improved. Relevant policies and preparations are basically in place. At present, all parties in the market responded very positively, and various types of financial institutions, technology-based enterprises, and equity investment institutions actively communicated with the People's Bank of China and the China Securities Regulatory Commission to connect with the willingness to issue technology innovation bonds. According to preliminary statistics, nearly 100 market institutions currently plan to issue technology innovation bonds of more than 300 billion yuan, and more institutions are expected to participate in the future.

In addition, in order to support equity investment institutions to issue long-term bond financing on the "Technology Board", the People's Bank of China, together with the China Securities Regulatory Commission, has learned from the experience of establishing private enterprise bond financing support tools in 2018 and created a risk sharing tool for technology innovation bonds. The People's Bank of China provides low-cost re-lending funds to purchase technology innovation bonds. At the same time, together with local governments and market-oriented credit enhancement institutions, it adopts diversified credit enhancement measures to jointly participate in sharing the risk of default losses of bond investors. It can also effectively reduce the bond issuance financing costs of equity investment institutions and support them to issue longer-term bonds, such as 8-year and 10-year bonds.

Pan Gongsheng said that in short, the specific policy arrangements such as the "technology board" of the bond market and risk sharing tools will help further broaden the financing channels of technology-based enterprises and equity investment institutions, and will also help further stimulate market vitality and confidence, drive more social capital to enter the field of technological innovation, and promote the mutual promotion and virtuous cycle of the private equity financing market and the stock issuance and trading market.

The People's Bank of China China Securities Regulatory Commission Announcement [2025] No. 8

In order to implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, accelerate the development of the multi-level bond market, build a science and technology financial system that is compatible with scientific and technological innovation, strengthen financial support for major national scientific and technological tasks and small and medium-sized enterprises, and improve long-term capital investment early, small, long-term and hard technology support policies, we hereby announce the following issues related to supporting the issuance of science and technology innovation bonds:

1. Enrich the bond product system of technological innovation and accelerate the construction of a multi-level bond market

(1) Three types of institutions, including financial institutions, technology-based enterprises, private equity investment institutions and venture capital institutions (hereinafter referred to as equity investment institutions) can issue technology innovation bonds and raise funds to support investment and financing in the field of technology innovation.

(II) Commercial banks, securities companies, financial asset investment companies and other financial institutions can issue technology innovation bonds, focus on their main responsibilities and business, give full play to the professional advantages of investment and financing services, and use the raised funds in accordance with the law to specifically support business in the field of science and technology innovation through various channels such as loans, equity, bonds, fund investment, capital intermediary services, etc.

(III) Technology-based enterprises can issue science and technology innovation bonds and raise funds for product design, R&D investment, project construction, operation, mergers and acquisitions in the field of science and technology innovation.

(4) Equity investment institutions with rich investment experience, excellent management performance, and excellent management team can issue technology innovation bonds and raise funds for the establishment and expansion of private equity investment funds.

(5) Issuers can flexibly choose the issuance method and financing period, and innovatively set up bond terms, including rights-containing structure, issuance payment, principal and interest repayment, etc., to better match the characteristics of funds use and financing needs.

2. Improve the supporting support mechanism for science and technology innovation bonds to provide convenience for science and technology innovation bond financing

(VI) Optimize the issuance management process of science and technology innovation bonds, improve financing efficiency, and support issuers to flexibly issue installments based on the characteristics of fund use. Simplify the information disclosure rules for technology innovation bonds, and issuers can agree with investors to exempt relevant disclosure information. Financial institutions can use balance management to issue technological innovation bonds.

(7) Innovate the credit rating system of technology innovation bonds. Credit rating institutions can break the traditional rating idea with assets and scale as the focus based on the characteristics of equity investment institutions, technology-based enterprises and technological innovation businesses, reasonably design special rating methods and rating symbols, and improve the forward-looking and distinctiveness of ratings.

(8) Establish a special underwriting evaluation system and market-making mechanism for science and technology innovation bonds, organize market makers to provide special market-making quotation services for science and technology innovation bonds, and establish a linkage mechanism for underwriting and market-making. Increase the weight of underwriting and market making in the underwriter and market makers evaluation system.

(9) Invest in technology innovation bonds such as various types of financial institutions, asset management institutions, social security funds, corporate annuities, insurance funds, pensions, etc. Encourage the creation of science and technology innovation bond index and products linked to related indexes.

(10) Improve the risk diversification and sharing mechanism of science and technology innovation bonds. Financial institutions such as commercial banks, insurance companies, securities companies, and professional credit enhancement institutions and guarantee institutions can support the issuance and investment transactions of science and technology innovation bonds based on their own risk pricing capabilities and management levels.

(11) Places with conditions may rely on their own financial resources to establish a risk compensation fund or introduce other preferential policies and measures to provide support measures such as interest subsidies and government financing guarantees for science and technology innovation bonds.

(12) Strengthen the on-site and post-event management of science and technology innovation bonds to ensure that the funds raised are used to support the development of science and technology innovation. Include technology innovation bonds in the quality and efficiency evaluation of science and technology financial services in financial institutions.

(13) The self-discipline organizations of the interbank bond market and exchange bond market should accelerate the improvement of supporting rules for science and technology innovation bonds. Relevant market infrastructure institutions can provide special services for science and technology innovation bonds, and appropriately reduce and exempt related service fees.

National Interbank Offering Center: Reduce and exempt transaction fees related to technology innovation bonds

On May 7, the National Interbank Offering Center issued a notice that in order to implement the People's Bank of China's policy spirit on innovatively launching the "Technology Board" of the bond market and increase the support for technological innovation in the bond market, the National Interbank Offering Center decided to fully exempt the transaction fees for trading and trading of domestic members of the interbank bond market from now on, with the exemption period from 2025 to 2027.

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Three major exchanges: Further support the issuance of technological innovation bonds to serve new quality productivity

On May 7, the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Beijing Stock Exchange respectively issued notices on further supporting the issuance of technological innovation bonds to serve new quality productivity. The notice shall come into effect on the date of publication. If the relevant business rules stipulate that the provisions of science and technology innovation bonds are inconsistent with the notice, the notice shall prevail.

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The details are as follows:

1. Further expand the scope of issuing entities and funds raised, and expand the coverage of technology and financial services

(1) New support for financial institutions to issue technology innovation bonds. On the basis of continuing to support the issuance of science and technology innovation bonds by issuers of science and technology innovation enterprises (technology innovation), science and technology innovation upgrading, science and technology innovation investment and science and technology innovation incubation issues, new financial institutions such as commercial banks, securities companies, financial asset investment companies, etc. will give full play to the professional advantages of investment and financing services, and use the raised funds in accordance with the law to specifically support business in the field of science and technology innovation through loans, equity, bonds, fund investment, capital intermediary services and other channels.

(2) New funds raised by equity investment institutions are added to support private equity investment funds. Support private equity investment institutions and venture capital institutions with rich investment experience, excellent management performance, and excellent management team to issue technology innovation bonds, and raise funds for the establishment and expansion of private equity investment funds.

2. Further simplify information disclosure arrangements and improve the pertinence and effectiveness of information disclosure

(III) Simplify the information disclosure arrangements for science and technology innovation bonds. The issuer of the Technological Innovation Bond may apply concise information disclosure arrangements in accordance with the provisions of the business rules of this firm to simplify the application and issuance materials and information disclosure, and the issuer may agree with investors to exempt relevant disclosure information. Issuers of technology-based enterprises with debt-to-asset ratios not higher than the average level of the same industry and have industry-leading status may apply for appropriate extension of the validity period of annual and semi-annual financial reports, with the validity period of annual financial reports being extended to the end of August of the year, and the validity period of semi-annual financial reports being extended to the end of April of the following year; if there are no major adverse changes in the latest period, the changes and reasons for the major asset-liability accounts of the semi-annual financial statements can be briefly disclosed in the form of a list.

(IV) Simplify the signature and seal documents of the application materials. If the directors, supervisors and senior management of the issuer of science and technology innovation bonds are supported to sign written confirmation opinions on bond issuance documents in accordance with regulations during the bond project application stage, and promise to acknowledge the issuance documents of each period and perform the prescribed responsibilities, there is no need to sign a written confirmation opinion before each period of bond issuance. The auditing agency has issued a statement page on the content of the audit report cited in the issuer's previous prospectus, confirming that there is no conflict between the prospectus and the audit report, and the lead underwriter has checked that the content of the audit report cited in the bond issuance documents in this period is consistent with the previous period, the auditing agency does not need to sign the relevant statement again before each period issuance of the bond.

3. Further improve the supporting support mechanism and create a good market ecology with first- and second-level linkage and investment and financing coordination

(5) Improve the "green channel" mechanism for the financing review of science and technology innovation bonds. The issuer applies to the "green channel" mechanism of "read and review" for the issuer to declare and issue science and technology innovation bonds. Technology-based enterprises that break through key core technologies can refer to and apply the optimization review arrangements of well-known mature issuers to improve the review and registration efficiency of science and technology innovation bonds. In principle, if there are no negative situations that need to be paid attention to, the review time limit of our firm shall not exceed 10 working days.

(VI) Issuers are encouraged to innovate in designing bond terms. Issuers are encouraged to innovate in issuance methods, term structures, interest rate determination and calculation methods, principal and interest repayment methods, redemption or conversion options, and credit enhancement methods. Support issuers to set up innovative clauses such as pledge guarantee for expected income, pledge guarantee for intellectual property rights, convertible equity, coupon interest rate linked to the growth of science and technology innovation enterprises (technology innovation enterprises) or the income and cash flow of fundraising projects, and other innovative clauses.

(7) Optimize the arrangements for trading mechanisms such as market making of science and technology innovation bonds. Support the pledge financing of science and technology innovation bonds. The pledge discount coefficient can be appropriately increased based on the value of the corresponding discount coefficients at each level of the bond, and moderately lower the threshold for inclusion of science and technology innovation bonds into the benchmark market maker. Securities companies are encouraged to provide linkage services for underwriting and market-making quotation for technology innovation bonds. The institute includes the underwriting and market-making business of securities companies in the annual evaluation of securities companies and the participation in innovative business or product pilot projects.

(8) Guide investment institutions to increase investment in technology innovation bonds. Support bank wealth management and securities asset management to create special asset management products that invest in technology innovation bonds or are linked to science and technology innovation-related indexes. Promote public fund management companies to create technology innovation bond ETFs, and support technology innovation bond ETFs to improve liquidity through pledge, market making and other mechanisms. Support medium- and long-term funds such as social security funds and corporate annuities to increase the allocation of technology innovation bonds and technology innovation bond-related products.

(9) Reduce the settlement cost of technological innovation bond transactions. The Institute continues to exempt the registration fee for the issuance and subscription fee for the issuance and subscription fee of the Science and Technology Innovation Bond, the initial and annual fee for the listing (listing) and the annual fee, the transaction fee for the transaction (transfer) of the current bond transaction (transfer), and cooperates with the implementation of the free collection of the Science and Technology Innovation Bond registration fee, the dividend redemption fee, the redemption fee and the settlement fee.

Adhere to the orientation of scientific and technological innovation, and scientific and technological innovation bond funds should be mainly invested in the field of scientific and technological innovation in accordance with the law and regulations. The institute will strengthen on-site and post-event management, urge issuers to use raised funds in compliance, strengthen intermediary institutions' regulatory responsibilities for raised funds, and improve the effectiveness of bond markets in serving the national strategy.

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[Editor in charge: Qin Peijie PF207]