Measures For No Longer Strengthening The Rating Of Intermediaries

The registration system for issuing corporate bonds has been further improved.

To seek opinions on the measures for the administration of the issuance of bonds (hereinafter referred to as the measures for the administration of the issuance of bonds) by the SFC on July.

In fact, since the implementation of the new securities law on March 1, the registration system has been implemented for the public issuance of corporate bonds. The revision of the administrative measures is to further clarify the system of the registration system reform for the public issuance of corporate bonds.

"The key points of the revision of the administrative measures are the registration procedures and relevant requirements for public issuance of corporate bonds, while strengthening the responsibilities of underwriting institutions, securities service institutions and issuers. In addition, there are also the prohibition of issuers from self financing, the Underwriters shall not solicit business by unfair competition such as being significantly lower than the industry pricing level, the issuance of corporate bonds shall not increase government debt and cancel the strong bonds And other relevant regulations. " On August 10, a big securities firm in Beijing told the 21st century economic reporter.

Further clarify the institutional arrangements

According to the disclosure, the "administrative measures" clarify the issuance conditions and registration procedures for public issuance of corporate bonds, strengthen the supervision on the practice of underwriting institutions and securities service institutions, strengthen the relevant obligations of issuers, their controlling shareholders and actual controllers, and enrich administrative supervision measures.

"The revised administrative measures will improve the relevant system of the corporate bond registration system, further improve the issuing efficiency of corporate bonds in the future, and the responsibilities of all relevant participants will be clearer." According to the above-mentioned institutions.

Zhou Yue, an analyst at Guojin securities, pointed out that the promulgation of the administrative measures has stipulated the relevant systems of the corporate bond registration system. In view of the conflict between the new securities law and the administrative measures for issuance and trading of corporate bonds (2015), the CSRC has revised the administrative measures to better undertake the provisions of the new securities law.

It is worth mentioning that an important change in the administrative measures is aimed at credit rating, which has a great impact on rating agencies.

In addition, the requirements for rating agencies not to rely on public bond issuance in 2015 have been reduced compared with the requirements for the rating of public bond issuers 。

In recent years, a series of bond default problems have gradually appeared. In terms of bond issuance rating, in the past, it was an important guarantee for issuers to successfully raise funds or even get lower interest rates, and it was also a stable business for rating agencies. But after the new regulations, the era of "lying down to make money" may never return.

"In the long run, it's not good for the company to rely on the public credit rating, which means that the company needs less credit rating in the future. And this period of time, the virtual high rating has been troubling the market, for investors, or to improve the ability to identify risk. " Beijing a medium-sized private institution bond fund manager said.

Although the private placement debt rating is not enough, there is still no requirement to improve the rating of most of the bonds. In addition, there is still no demand for the credit rating of the main body of the dealers association to cancel the rating. Although the domestic rating centers are generally high, they also provide an analytical benchmark for investors, intermediaries and other market parties. The cancellation of the main credit rating requirements puts forward higher requirements for the research level of investors' credit. " Zhou Yue pointed out.

Rapid development under the registration system

Another focus of the market is that the administrative measures strengthen the responsibilities of issuers, underwriting institutions and securities service institutions, including strengthening the responsibility of information disclosure of issuers, requiring the underwriting institutions to establish and improve the internal accountability mechanism, and the securities service institutions to perform their duties prudently.

As far as the underwriters are concerned, the administrative measures also specify the relevant provisions on the establishment of an accountability mechanism and the prevention of excessive incentives and low price competition. For example, the underwriting institution should comprehensively evaluate the project implementation cost and risk liability, reasonably determine the quotation, and shall not solicit business by unfair competition such as obviously lower than the industry pricing level.

For the increasingly fierce "price war" of bond underwriting in recent years, the revised "management measures" also shows the attitude of the regulatory authorities.

"Securities companies often offer low prices in order to compete for big projects. In order to earn fame or seek more business opportunities, many institutions will follow the trend. However, with the regulatory authorities paying attention to strike hard, weakening the scale evaluation index and other measures, the market has changed again. " A large securities underwriter told the 21st century economic reporter.

In fact, since last year, the relevant system of corporate bond issuance registration system has been further implemented and improved, and the market has become active. Since the implementation of the corporate bond system in March, the number of corporate bonds issued reached its peak in March.

"The registration system for issuing corporate bonds is a clear signal to vigorously develop the capital market. It will shorten the period of issuing bonds at the provincial level, shorten the period of issuing bonds and improve the efficiency of enterprises Said the securities trader. (Editor: Wu Yanling)