On February 7, “Xinhua Factoring – New Jiangsu Red Culture Inheritance Factoring Creditor’s Rights Asset-Backed Plan (Old Revolutionary Base Areas) (1st Tranche)” (“Xinhua Factoring 1st Tranche”) saw its listing ceremony held at SZSE. It’s the first ever asset-backed special plan for old revolutionary base areas in China, showcasing SZSE’s vigorous exploration to deepen financial product innovation and promote the development of old revolutionary base areas.

With an issuing volume of CNY 510 million, “Xinhua Factoring 1st Tranche” was established on 29 December 2022 and has a duration of two years. Its underlying assets consist of the receivable accounts for infrastructure projects in old revolutionary base areas like Yancheng, Xuzhou and Huai’an, which include the efficient agriculture project, the Yangtze River Avenue (Yalu Road-Changxin Road) project in Xixin High-tech Zone and the “A Forest” project. All the funds raised will be used to finance the enterprises in the old revolutionary base areas to fuel local development. The successful issuance of “Xinhua Factoring 1st Tranche” helps shorten the payment collection period of local enterprises, increase the efficiency of fund utilization, and find a new path to revitalize old revolutionary base areas through financial innovation. So, the practice is replicable and scalable.

Having been committed to supporting national development strategies, SZSE has leveraged the role of the capital market as a hub, introduced new financing products to the capital market, and worked with all market participants to explore a new path to direct financing that supports high-quality development. To date, SZSE has issued more than CNY 650 billion of innovative fixed income products in diverse fields like rural revitalization, technological innovation, digital economy and green and low-carbon development, in an effort to facilitate financing for high-tech enterprises, innovation-oriented enterprises and start-ups, small and medium-sized enterprises, and private enterprises.

Going forward, SZSE will faithfully carry out the guiding principles of the 20th CPC National Congress and the Central Economic Work Conference, and, under the leadership of CSRC, ensure stability while pursuing progress, adhere to systems thinking, and uphold fundamental principles while breaking new ground. SZSE will increase its presence in direct financing, work harder to foster the market, and help the enterprises in the old revolutionary base areas and the areas inhabited by ethnic groups leverage a combination of bonds, asset securitization products and infrastructure REITs to speed up development, so as to further enhance the capability of SZSE bond market in serving coordinated regional economic development.