On March 24th, the exchange bond market saw multiple favorable returns. Recently, the China Securities Depository and Clearing Corporation has launched three measures, including allowing credit bond ETFs to pilot exchange pledged repurchases, expanding the scope of repurchase of credit protected bonds, and temporarily waiving some bond registration and settlement fees. In the view of Tan Chang, a researcher at the China Chengxin International Research Institute, the relevant institutional arrangements have increased financing support for key areas and weak links, while also activating secondary bond market trading. On the one hand, continuing the temporary exemption of service fees and settlement fees for the issuance of private enterprise bonds, and relaxing the qualification requirements for the main body of credit protected bond repurchase business, will help to promote the improvement of the financing environment for private enterprise bonds through coordinated efforts from the issuance, trading, and credit enhancement ends; On the other hand, piloting the repurchase of credit bond ETFs can help increase the demand for credit bond ETFs from the investment side, attract medium and long-term funds to enter the market, indirectly promote the liquidity and trading heat of credit bonds, and better play the role of the exchange’s credit bond market in serving private enterprises.
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