What does short-term financing bill registration mean?

Short-term financing bonds refer to securities issued by non-financial enterprises with legal person status in People's Republic of China (PRC) in the inter-bank bond market according to the conditions and procedures stipulated in the Measures for the Administration of Short-term Financing Bonds and agreed to repay the principal and interest within a certain period of time. The introduction of short-term financing bonds in the inter-bank bond market is an important measure for the reform and development of the financial market. The healthy development of short-term financing bill market is conducive to changing the imbalance between direct financing and indirect financing, improving the transmission mechanism of monetary policy, maintaining the overall stability of finance and promoting the comprehensive, coordinated and sustainable development of financial markets. Issue target: Financing bonds are not issued to the public, but only to institutional investors in the inter-bank bond market, and are traded in the inter-bank bond market. Issuance method: the issuance of financing bonds is underwritten by qualified financial institutions, and the enterprise independently chooses the lead underwriter. If an enterprise changes its lead underwriter, it shall be reported to the People's Bank of China for the record; If it is necessary to organize an underwriting syndicate, the lead underwriter shall organize an underwriting syndicate. Enterprises shall not sell financing bonds by themselves. The underwriting method and related expenses shall be determined by the enterprise and the underwriting institution through consultation. Issue price: the issue interest rate or issue price of financing bonds shall be determined by the enterprise and the underwriting institution through consultation. Term of issuance: The term of financing bonds shall not exceed 365 days at the longest, and the enterprise issuing financing bonds may independently determine the term of each financing bond within the above-mentioned maximum period. Issuance scale: balance management will be implemented for financing bonds issued by enterprises, that is, the balance of financing bonds to be repaid does not exceed 40% of the net assets of enterprises. Investment risk: the investment risk of financing bonds shall be borne by the investors themselves. The financing bonds are registered and managed by the China Government Securities Depository and Clearing Co., Ltd. (hereinafter referred to as the Central Clearing Company) in the form of real-name bookkeeping, and the Central Clearing Company is responsible for providing relevant services. The People's Bank of China shall supervise and manage the issuance, trading, registration, custody, settlement and payment of financing bonds according to law. Compared with other financing methods, short-term financing bills have three advantages. The first is the cost advantage. According to the current bond yield structure, 1 year short-term financing bonds have a cost advantage of about 2 percentage points compared with short-term loan interest rates. Second, short-term financing bonds are more flexible. For example, the filing system is adopted, the issuance procedures are relatively simple, and the issuance cycle is obviously shortened; The balance management system enables issuers to flexibly decide the timing and term structure of products according to market interest rate, supply and demand, their own financing needs and cash flow characteristics; The inter-bank market gathers the most important institutional investors in the market, including commercial banks, insurance companies and funds. Their huge capital scale is beneficial for issuers to complete financing in a short time. Third, it is conducive to establishing market reputation. By issuing short-term financing bonds and regularly disclosing financial information, enterprises can establish a good credit image in the capital market and lay a credit foundation for continuous financing, long-term bond financing and equity financing. The policy background of short-term financing bonds in the inter-bank bond market is an important opportunity for the development of China's financial market and China's money market. The development of money market is of great strategic significance for changing the imbalance between direct financing and indirect financing, dredging the transmission mechanism of monetary policy, preventing the excessive growth of broad money supply and maintaining the overall financial stability. How to seize the important opportunity period and promote the sustained, rapid and healthy development of the money market is a major issue related to the overall situation of financial reform and development. The main challenge facing the development of China's money market is the challenge of unbalanced development. This includes two aspects of imbalance: first, the development of various sub-markets in the money market is unbalanced. The interbank lending and bond repurchase market is large, and the stock of short-term treasury bonds and short-term policy financial bonds is small, and there are no financing commercial promissory notes and large negotiable certificates of deposit. Second, the development of money market products, participants, intermediaries and market rules system is unbalanced. Most of the problems encountered in the development of money market sub-market are rooted in the imbalance of money market development. If only partial reform measures are taken to solve these problems, it will be difficult to fundamentally solve the above problems, and sometimes even bring new problems. The contradictory movement among the participants, products and operating rules of the money market is the driving force for the development of the money market. The comprehensive and balanced development of the money market is manifested in the improvement of the marketization of participants, the increasing enrichment of financial products and the continuous improvement of operating rules. However, the development of the three elements of the money market cannot be "rushed". At a certain stage, the development of one factor is bound to be faster than other factors, and it will drive the development of other factors. The development of China's money market shows that product innovation is an important breakthrough to promote the overall development of China's financial market. Accelerating the innovation of financial products, perfecting the market rules system and promoting the marketization of participants are important development policies at this stage. Short-term financing bonds issued to institutional investors in the inter-bank market are a money market tool. At present, the conditions for introducing short-term financing bonds into the inter-bank market are basically met, and issuing short-term financing bonds to qualified institutional investors is an important policy measure to promote the overall financial reform with the development of the money market. Developing the short-term financing bill market is conducive to improving the transmission mechanism of monetary policy. According to the theory of monetary policy transmission mechanism, the transmission of monetary policy is not only through the bank credit channel, but also through the change of market interest rate. At present, the financing structure dominated by indirect bank financing in China determines that the transmission mechanism of monetary policy mainly depends on credit transmission, and the transmission of monetary policy is greatly influenced by the behavior of commercial banks. Improving the governance structure and management level of commercial banks so that their behaviors have a positive feedback effect on the operation of monetary policy is an important means to strengthen the transmission of monetary policy, but it will take a long time to realize this change. At present, it is more realistic to strengthen the market transmission efficiency of monetary policy, that is, to vigorously develop the direct financing market and let enterprises finance more through the market. The central bank can influence the interest rate of the money market by regulating the supply and demand of funds in the money market, thus directly affecting the financing cost and investment behavior of enterprises. While keeping the credit transmission mechanism of monetary policy unchanged, we should improve the efficiency of the market transmission mechanism. Developing the short-term financing bond market is conducive to maintaining overall financial stability. Compared with indirect financing, direct financing has the characteristics of high market transparency, scattered risks and financial stability. Debtor's breach of contract is the normal state of market economy and the inevitable result of market competition. When enterprises default, due to the low transparency of loans, it is difficult to form effective market pressure on enterprises, and the risks of enterprises are directly transformed into the risks of banks, and the accumulation of non-performing loans is transformed into the risks of the financial system, which ultimately needs to be disposed of by the central bank. Compared with short-term loans, short-term financing bonds have high information transparency, strict information disclosure and credit rating during the whole issuance process and before the bonds are fully paid, and the fact of default will be made public and the market is strongly binding, which is conducive to reducing the malicious default of moral hazard caused by insufficient constraints and reducing the probability that corporate risks will be transformed into bank risks; Second, the risk is dispersed. There are many investors in short-term financing bonds, and the risk responsibilities are scattered. In addition, short-term financing bonds can be circulated in the secondary market. Changes in the issuer's credit status can be absorbed by more investors through price changes in the secondary market and bond transfer between different investors, which reduces the risk of a single investor, reduces the possibility of risk accumulation and turns into systematic risk, and is conducive to financial stability. The development of short-term financing bond market is conducive to the coordinated development of capital market and money market. As an active debt tool for enterprises, short-term financing bills provide a channel for enterprises to enter the money market for financing. Compared with ordinary enterprises, a good listed company has the advantages of relatively perfect governance structure and relatively transparent information disclosure, and has the advantage of becoming the issuer of short-term financing bonds. Issuing short-term financing bonds by high-quality listed companies can effectively broaden financing channels, reduce financial costs and improve operating efficiency. It can also strengthen the external constraints on listed companies through the qualified institutional investor market, which is conducive to improving the quality of listed companies as the micro-foundation of the capital market and the long-term development of the capital market. On the basis of securities companies being approved to issue short-term financing bonds, the emerging short-term financing bond market has broadened the business scope of securities companies and created favorable conditions for securities companies to develop new business and improve profitability. Short-term financing bonds also create a favorable environment for the development of emerging institutional investors such as funds, and the expansion of fund scale is an organic part of the development of capital market. At the same time, the introduction of short-term financing bonds in the inter-bank market enriches money market instruments, which will change the problems of uncoordinated development of long-term and short-term instruments in the direct debt financing market and imbalance between the national debt market and the non-national debt market. To sum up, the development of short-term financing bond market is conducive to the coordinated development of capital market and money market. The main content of the Measures for the Administration of Short-term Financing Bonds belongs to the departmental regulations of the People's Bank of China, which mainly stipulates the basic principles, regulatory framework, core norms, basic requirements for information disclosure and main supervision and management measures of the primary market and the secondary market. The main provisions of the Measures for the Administration of Short-term Financing Bonds include the following aspects: First, it is clear that the People's Bank of China shall supervise and manage the issuance and trading of short-term financing bonds according to law, and the issuance of short-term financing bonds must be reported to the People's Bank of China for the record. Second, it is clear that short-term financing bonds are only issued to institutional investors in the inter-bank bond market, not to the public. Third, short-term financing bonds are required to be issued by filing. Fourth, it is stipulated that the issuance scale of short-term financing bonds should be managed by the balance, the term should be managed by the upper limit, the issuance interest rate should not be controlled, and the short-term financing bonds should be managed by paperless centralized registration at the Central Clearing Company. Fifth, the issuer is required to carry out credit rating, hire certified public accountants to conduct audit and hire lawyers to issue legal opinions. The sixth is to clarify the issuer's information disclosure norms. How to design the market framework of short-term financing bonds to reflect the principle of marketization? In the process of promoting the development of short-term financing bonds market, the first problem is to adhere to the principle of market orientation and run this principle through all aspects of promoting market development. In terms of market access, we should persist in weakening administrative intervention, hand over the problems that the market can solve to the market, hand over the responsibility of risk identification and risk taking to investors, hand over the responsibility of information disclosure to professional rating agencies and intermediary service agencies, and the administrative department should resolutely free itself from the issuer's substantive judgment. In terms of distribution methods, we insist on market-oriented distribution methods such as consignment, underwriting and bidding, and the distribution interest rate is formed through market competition. In the process of market development, we should adhere to objective laws and pay attention to gradual progress. The Measures for the Administration of Short-term Financing Bonds require issuers to disclose information. The Measures for the Administration of Short-term Financing Bonds clearly stipulates the information disclosure rules under the unified supervision and management of the People's Bank of China, and clearly stipulates a set of information disclosure systems including issuance information disclosure, continuous information disclosure, temporary announcement of major events, announcement of excessive investment, and announcement of default facts, and implements the regulatory responsibilities, information disclosure media and operational procedures one by one. Information disclosure is under the unified supervision of the People's Bank of China, and important information is published on "China Money Network" and "China Bond Information Network" at the same time, which is convenient for participants in the inter-bank bond market to obtain and analyze the information disclosed by the issuer. For the disclosure of false information, the Administrative Measures clearly stipulates various measures such as stopping issuers from issuing short-term financing bonds, stopping intermediaries from engaging in related intermediary business, and taking joint and several liability for compensation. Since 2002, the People's Bank of China has unified the information disclosure norms among some securities companies and financial companies that have entered the interbank lending market, and gained experience in information disclosure in the interbank market. The People's Bank of China will continue to strengthen the supervision and management of information disclosure, improve the content requirements of information disclosure and continue to improve the monitoring and analysis mechanism of information disclosure in strict accordance with the Measures for the Administration of Short-term Financing Bonds and related documents. How to treat the credit risk of short-term financing bills correctly is the core issue of the development of short-term financing bills market, which must be treated correctly. First of all, we should realize the objectivity of credit risk. To develop the non-government bond market, credit risk is inevitable. Therefore, short-term financing bonds cannot be expected to be a financial product without credit risk. If the credit rating agencies have given the correct identification, investors are capable and prepared, and the issuance does not violate the issuance rules, then the default risk of some short-term financing bonds is normal and allowed by the market. Under the direct financing mode, this kind of risk is shared by many investors in an open, just and fair situation, rather than concentrated in the banking system, which is opaque and forms potential financial risks. Secondly, credit risk should be digested and solved by the market mainly through market-oriented means. If the short-term financing bonds are subject to administrative examination and approval, it will inhibit the development of the market by relying mainly on the strict examination of the issuer's qualifications by the management. Third, guide investors of different natures to deal with credit risks in different ways. There are institutional investors and individual investors in the market. The former is relatively strong in risk awareness and risk tolerance, while the latter is weak in risk judgment and risk tolerance. Management should treat investors differently in market access, minimize the impact of credit risk, only allow qualified institutional investors to participate in short-term financing bonds in advance, and encourage individual investors to indirectly invest in the short-term financing bond market through funds and pooled wealth management products. Short-term financing bills are "bad" for banks as a whole. Obviously, high-quality customers are the most trusted objects of bank loans, but now some customers' financing is solved by issuing short-term financing bonds. Generally speaking, an enterprise has a basic bank and several ordinary banks. Ordinary banks, which used to wander on the edge of cooperation, deepened their relationship with issuers by acting as lead underwriters, took the opportunity to expand their business scope, and may even realize the transformation of their status from secondary to primary. In essence, the introduction of short-term financing bonds is conducive to changing the existing business model of commercial banks, improving the level of market-oriented operation, and promoting the reform of commercial banks with external help. Without further reforming the "internal force" of short-term loan interest rate, the profit model innovation and financial innovation of commercial banks will also face many difficulties.