The Shanghai Stock Exchange (hereinafter referred to as the "SSE") has added new regulations on low-carbon transition bonds and epidemic prevention and control bonds, and strengthened the standardization of bond review procedures.

　　On the evening of June 2, the Shanghai Stock Exchange issued the "Guidelines for the Application of the Shanghai Stock Exchange's Corporate Bond Issuance and Listing Review Rules No. 2 - Specific Types of Corporate Bonds (Revised in 2022)" (hereinafter referred to as the "Guidelines for Specific Types of Corporate Bonds"), aimed at In deepening the financing support for epidemic prevention and control and low-carbon transformation, and at the same time integrating some single-line rules.

　　At the same time, the Shanghai Stock Exchange issued the "Guidelines for the Application of the Shanghai Stock Exchange's Bond Issuance and Listing Review Rules No. 5 - Review Procedures", which regulates the entire process of bond projects from the application acceptance to the formation of the review results.

　　New regulations on epidemic prevention and control and low-carbon transition bonds

　　In November 2020 and July 2021, the Shanghai Stock Exchange successively issued and revised the Guidelines for Specific Types of Corporate Bonds, forming specific types of bonds such as short-term corporate bonds and renewable corporate bonds, as well as green bonds, innovation and entrepreneurship, bailouts, and rural revitalization. A specific variety of bond sequences composed of specific subject bonds.

　　"At the same time, the Shanghai Stock Exchange attaches great importance to major decisions and deployments in response to the country's promotion of 'dual carbon' work and further strengthening of financial support for epidemic prevention. In the past year, it has actively researched and launched low-carbon transition bonds and epidemic prevention and control bonds. All parties in the market commented positively." The Shanghai Stock Exchange said.

　　In this regard, the revision of the Guidelines for Specific Types of Corporate Bonds focuses on new regulations on low-carbon transition bonds and epidemic prevention and control bonds.

"The purpose is to strengthen market guidance, further leverage finance to support the upgrading and transformation of green industries, and ensure that key enterprises can fight the tough battle against the epidemic," the Shanghai Stock Exchange said.

　　The rules have been revised in the following three aspects: First, the new rules and arrangements for low-carbon transition corporate bonds, clarify the definition of bonds, the use of raised funds, special terms and arrangements, project declaration and disclosure requirements, etc., and refer to mature market practices. The concept of low-carbon transition-linked bonds is introduced, and companies are encouraged to make good use of low-carbon transition bonds to promote "dual-carbon" work in light of their own circumstances.

　　The second is to further disclose the relevant arrangements and specific implementation requirements of the epidemic prevention and control bonds in the context of the current national epidemic prevention and control work, and encourage bond issuers who have undertaken the important tasks of epidemic prevention and production and resumption of work to make good use of the epidemic prevention and control bonds. , to help entities with finance and help enterprises fight the tough battle against the epidemic.

　　The third is to comprehensively sort out and integrate the single-line rule notices, merge exchangeable corporate bonds and “Belt and Road” bonds, and form a “one-pass” for specific types of corporate bonds with a complete system and unified format and content, which is convenient for market players to understand and use.

　　"Next step, the Shanghai Stock Exchange will continue to explore the depth of the bond market, actively serve the diverse needs of both investors and investors, deepen financial service entities, facilitate the industrial transformation of the industry, and continuously promote the high-quality development of the bond market," the Shanghai Stock Exchange said.

　　Strengthen bond review procedures

　　At the same time, the Shanghai Stock Exchange regulates the credit bond review procedures to improve review efficiency and accept social supervision.

　　The Shanghai Stock Exchange stated that since the corporate bond reform in 2015, the Shanghai Stock Exchange has formulated and established corporate bond pre-examination rules, systems and working procedures. After continuous improvement, the operation is generally good.

After the implementation of the registration system, the Shanghai Stock Exchange has optimized and improved the credit bond review process based on the experience of the previous pre-review system and in accordance with the idea of ​​full supervision and openness and transparency.

　　The newly released guidelines regulate the entire process of bond projects from application acceptance to the formation of audit results. There are three main changes:

　　The first is to unify the review procedures for public and private bonds and asset-backed securities, optimize each link and the mechanism of review meetings, and establish a simple, clear, and transparent review process for credit bonds that is easy for companies to understand and participate in, and is conducive to standardized implementation.

　　The second is to implement the check and balance mechanism throughout each review process, clarifying the arrangements for the formation and issuance of feedback opinions, the composition and scope of authority of the expert meeting, and setting up a multi-layer check and review mechanism for each link, focusing on strengthening the check and balance effect of feedback meetings and expert meetings. Ensuring the quality of audit work and building a solid line of defense against corruption.

　　The third is to implement the requirements of “delegating power, delegating power, regulating and serving” to optimize the review efficiency, simplify some process nodes and time limits, proactively announce the detailed process steps and node time limits of the review work, and embed the credit debt financing consultation mechanism into the review process to provide review policies and review progress consultation. Window, let the market know more about audit and trust audit.

　　For the next step, the Shanghai Stock Exchange stated that it will implement the "three principles of registration system" in the bond market, continue to improve the audit work, improve the audit efficiency, and strive to open the audit process and optimize the audit mechanism to create more convenient, more efficient and more efficient. A credible financing review environment will give better play to the market function of the bond market in serving the real economy.

　　Author: Huang Siyu