Todays bond market is obviously picking up, with many bonds soaring.
Market data showed that Tsinghua holdings issued a number of bonds rose sharply, including 17 qingkong 01 (bond Code: 143218) opened at 54.01 yuan, up 49.01%.
Another bond issued by Tsinghua holdings 16 qingkong 02 (bond Code: 136773) also rose 41.91%.
Due to excessive short-term gains, the Shanghai Stock Exchange suspended 17 clearing 01 trading from 9:30 today and resumed at 14:57.
Prior to this, 17 clear control 01 experienced a continuous slump. On November 19, 17 Qingguan 01 plummeted by 30.79%, and on November 20, it plummeted by 39.63%, with a cumulative decline of 58.22%.
In addition to the above bonds, a number of bonds issued by centralized energy also rose sharply in the early trading, among which 16 Jizhong 01 rose by 24.45%.
Financial committee holds a meeting to maintain the stability of bond market
On November 21, Liu He, member of the Political Bureau of the CPC Central Committee, vice premier of the State Council and director of the financial stability and Development Commission of the State Council (hereinafter referred to as the financial commission), presided over the 43rd meeting of the financial committee to study and standardize the development of the bond market and maintain the stability of the bond market, according to the news on the 22nd of China government website. Relevant responsible comrades from the member units of the financial commission attended the meeting.
The main topic of the meeting is the recent bond default.
The meeting made five requests.
The meeting demands that, first, we should improve our political position and earnestly fulfill our responsibilities. Financial supervision departments and local governments should proceed from the overall situation and in accordance with the requirements of comprehensively ruling the country in accordance with the law, resolutely safeguard the authority of the legal system, implement the regulatory responsibility and territorial responsibility, supervise and urge all kinds of market entities to strictly perform their main responsibilities, and establish a good local financial ecology and credit environment. Second, uphold the zero tolerance attitude and maintain market fairness and order. We should strictly investigate and deal with all kinds of illegal acts such as fraudulent issuance, false information disclosure, malicious transfer of assets and misappropriation of issuance funds in accordance with the law, severely punish all kinds of evasion and cancellation of debts and protect the legitimate rights and interests of investors. Third, strengthen the self-discipline and supervision of the industry and strengthen the market restraint mechanism. Bond issuing enterprises and their shareholders, financial institutions, intermediary institutions and other market entities must strictly abide by laws and regulations and market rules, adhere to professional ethics, be diligent and responsible, be honest and trustworthy, and effectively prevent moral hazard. Fourth, strengthen coordination and cooperation among departments. We will improve the risk prevention, discovery, early warning and disposal mechanism, strengthen the investigation of potential risks, maintain reasonable and sufficient liquidity, and firmly hold the bottom line of no systemic risk. Fifth, continue to deepen reform. We should deepen the reform of the bond market, establish and improve the market system, improve the market structure, and enrich product services. We should deepen the reform of state-owned enterprises and improve the quality and efficiency of operation.
On October 23, brilliance group defaulted substantially because it failed to honor the private placement bond 17 Huaqi 05 with a scale of 1 billion yuan on schedule. Subsequently, the main credit rating of brilliance group was lowered several times, and Dongfang Jincheng and other institutions eventually lowered its credit rating from the original AAA level to CCC grade.
On November 16, brilliance group announced that at present, brilliance group has constituted a debt default amount of 6.5 billion yuan and overdue interest amount of 144 million yuan. Due to the shortage of enterprise funds, the approval of extension credit is not completed, resulting in the inability to repay.
Another AAA rated state-owned enterprise, Yongmei holdings, has also attracted much attention.
On November 12, Yongcheng Coal and Power Holding Group Co., Ltd. (hereinafter referred to as Yongcheng Holdings) issued an announcement, which showed that the companys 20 Yongmei scp003 (bond Code: 012000356) constituted a substantial breach of contract.
According to the data, the total issue amount of 20 Yongmei scp003 is 1 billion yuan, the interest rate is 4.39%, and the total principal and interest payable in this period is 1.032 billion yuan. 20 Yongmei scp003 should pay the principal and interest on November 10, 2020. However, as of the end of the due cashing date, Yongmei holdings failed to raise sufficient repayment funds as agreed, which constituted a substantial breach of contract.
The default shocked the market. The data show that the issuer yongcoal holdings is a state-owned enterprise in Henan Province, and the main rating of yongcoal holding given by credit in China before breach of contract is AAA.
On November 12, zhongchengxin lowered the main rating of Yongmei holdings from AAA to BB.
Affected by the above corporate bond default events, the bond market has been unusually depressed recently, and many corporate bonds have fallen sharply.
As for the bond default of related enterprises, the supervision has also taken action.
On November 20, the China Securities Regulatory Commission (CSRC) said that in the near future, Huachen Automobile Group Holding Co., Ltd. had conducted a special inspection on it in accordance with the law. According to the inspection results, it took administrative supervision measures to issue warning letters to brilliance group on the same day, and decided to file an investigation on suspected illegal information disclosure, and conduct synchronous verification on the intermediary agencies involved in the bonds of brilliance group Investigate and seriously investigate and punish relevant illegal acts. The CSRC said that it attached great importance to the protection of investors legitimate rights and interests, fully implemented the zero tolerance requirement of the financial commission of the State Council, severely cracked down on all kinds of illegal acts in accordance with the law, and maintained good order in the bond market. At the same time, we will continue to maintain and give full play to the normal functions of the bond market, and support enterprises of all types of ownership to develop financing through the bond market in accordance with the law. In the next step, the CSRC will do a good job in supervision in accordance with the law, firmly hold the bottom line of no systemic risk, deepen reform, improve the system, implement responsibilities and strict supervision, so as to promote the stable and healthy development of the bond market. Source: Securities Times editor in charge: Yang Bin_ NF4368
On November 20, the China Securities Regulatory Commission (CSRC) said that in the near future, Huachen Automobile Group Holding Co., Ltd. had conducted a special inspection on it in accordance with the law. According to the inspection results, it took administrative supervision measures to issue warning letters to brilliance group on the same day, and decided to file an investigation on suspected illegal information disclosure, and conduct synchronous verification on the intermediary agencies involved in the bonds of brilliance group Investigate and seriously investigate and punish relevant illegal acts.