① Recently, the corporate bond of First Capital Securities was renamed and issued as a sci-tech innovation bond, marking a number of circumstances throughout the 12 months; ② To date, 44 securities firms have accomplished the issuance of 64 sci-tech innovation bonds, with a complete scale of 66.17 billion yuan; ③ An extra 114.8 billion yuan in authorised quotas is awaiting issuance, indicating additional substantial progress potential for the sci-tech innovation bond market.
Cailian Press, October 22 (Reporter Junlan Chen) The sci-tech innovation bond market has seen one other case of energetic participation by a medium-sized securities agency. Recently, First Capital Securities introduced that it had obtained approval from the related authorities to rename its deliberate “public offering of corporate bonds targeting professional investors” right into a sci-tech innovation bond-related product. The single issuance quantity is not going to exceed 1 billion yuan, with a minimum of 70% of the proceeds being particularly allotted to the sphere of scientific and technological innovation.
The funding banking division of First Capital Securities informed Cailian Press that this transfer represents the corporate’s energetic response to nationwide methods, leveraging its benefits in fixed-income enterprise and monetary expertise capabilities to innovate enterprise fashions and increase the depth and breadth of sci-tech monetary providers.
First Capital Securities’ actions are usually not an remoted case. When contemplating an extended timeframe, a number of securities firms, together with GF Securities and Western Securities, have renamed their associated corporate bonds as sci-tech innovation bonds throughout the 12 months, with every issuance capped at not more than 1 billion yuan.
It is worth noting that, due to coverage assist, securities firms have actively injected monetary “liquidity” into the sphere of scientific and technological innovation by the issuance of sci-tech innovation bonds this 12 months. According to Wind knowledge and bulletins from securities firms, as of October 22, 44 securities firms have accomplished the issuance of 64 sci-tech innovation bonds, with a complete scale reaching 66.17 billion yuan; moreover, seven securities firms maintain an authorised quota of 114.8 billion yuan awaiting issuance, accelerating the enlargement of the sci-tech innovation bond market.
Another securities agency has renamed and issued sci-tech innovation bonds.
Securities firms are channeling extra monetary assets exactly into the sphere of scientific and technological innovation by renaming corporate bonds as sci-tech innovation bonds.
Recently, First Capital Securities introduced that the identify of its 2025 public providing of corporate bonds concentrating on skilled buyers might be modified to ‘First Capital Securities Co., Ltd. 2025 Public Offering of Science and Technology Innovation Corporate Bonds (Phase II) Targeted at Professional Investors.’ The issuance scale for this section is not going to exceed 1 billion yuan. This renaming doesn’t have an effect on the authorized validity of beforehand signed paperwork.
According to the funding banking division of First Capital Securities, after the renaming of this bond, the core change lies within the additional clarification and concentrate on the use of proceeds. The announcement reveals that after deducting issuance bills, a minimum of 70% of the proceeds raised from this bond might be used for funding science and expertise innovation-related companies, establishing a whole service ecosystem from issuance to utility; the remaining portion, not exceeding 30%, might be used to complement working capital.
The most important distinction between sci-tech innovation bonds and common corporate bonds lies within the use of proceeds. Proceeds from the issuance of sci-tech innovation bonds by securities firms are primarily used to assist funding and financing within the area of scientific and technological innovation. First Capital Securities’ actions are usually not remoted circumstances. Multiple securities firms have joined this ‘sci-tech transformation’ of corporate bonds throughout the 12 months. Incomplete statistics present that firms such as GF Securities and Western Securities have, by related renaming procedures, adjusted current corporate bonds or subordinated bonds starting from 500 million to 1 billion yuan to sci-tech innovation bonds and associated merchandise.
Industry insiders identified that the core goal of issuing expertise innovation bonds (Sci-Tech Bonds) is to broaden financing channels for expertise innovation enterprises, guiding bond market funds to speculate early, make investments small, make investments long-term, and put money into hard-core applied sciences, thereby stimulating innovation momentum and market vitality and fostering new productive forces. In the second and third quarters of 2025, with elevated coverage assist and steady enchancment of market mechanisms, the individuals in Sci-Tech Bonds will grow to be more and more diversified, and the market measurement will increase quickly. Securities corporations issuing Sci-Tech Bonds aligns with nationwide technique, channeling funds into the expertise innovation sector by these bonds and serving to domesticate new productive forces.
Nearly RMB 70 billion worth of Sci-Tech Bonds issued by securities firms throughout the 12 months
On May 7 this 12 months, the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC) collectively issued a brand new coverage explicitly supporting monetary establishments such as securities firms to problem Sci-Tech Bonds for the primary time, injecting a shot of confidence into the market. According to Wind knowledge, from May to October in simply half a 12 months, 44 securities firms accomplished the issuance of 64 Sci-Tech Bonds, totaling RMB 66.17 billion. Leading securities firms carried out notably nicely.
Breaking down the issuers, three securities firms issued greater than RMB 5 billion in Sci-Tech Bonds: CMB International (RMB 10 billion), CITIC Securities (RMB 9.7 billion), and Guotai Junan Securities (RMB 5.7 billion). Three securities firms issued Sci-Tech Bonds at a scale of RMB 2 billion: Galaxy Securities, BOC International, and Ping An Securities. The remaining securities firms’ issuance sizes ranged between RMB 500 million and RMB 1 billion.
CMB International topped the record with an issuance of RMB 10 billion, changing into the primary securities agency to exceed RMB 10 billion in Sci-Tech Bond issuance after the brand new coverage was carried out. This determine accounts for almost 20% of the overall issuance of Sci-Tech Bonds by securities firms. Data reveals that CMB International efficiently issued 5 tranches of bonds in May and September this 12 months, making it the main brokerage agency with the very best quantity of Sci-Tech Bond issuances so far.
In phrases of issuance quantity, CITIC Securities demonstrated a major underwriting benefit in large-scale Sci-Tech Bond initiatives. The firm issued 4 tranches of Sci-Tech Bonds through the 12 months, totaling RMB 9.7 billion; its largest single issuance reached RMB 5 billion, setting a file for related bond issuances throughout the 12 months.
Overall pricing and maturities point out that the typical rate of interest for Sci-Tech Bonds issued by securities firms is 1.86%, with a median maturity of 2.71 years, reflecting the present market’s means to offer comparatively low-cost medium- and short-term funding for such property.
In particular issuance circumstances, the tenor construction displays appreciable flexibility. The shortest tenor was “25 Guang KS1” issued by Everbright Securities, with a time period of solely 0.49 years, an issuance measurement of RMB 1 billion, and an rate of interest of 1.64%. Conversely, the longest tenor was “25 GTHTK2” issued by Guotai Junan Securities, with a period of 10 years, an issuance measurement of RMB 1.4 billion, and a coupon price of 2.1%. These two examples delineate the extremes of the present spectrum of tenors for Sci-Tech Bonds issued by brokerages.
Over RMB 100 billion in authorised issuance
From the availability reserve perspective, for the reason that starting of this 12 months, a minimum of seven securities firms have been authorised to problem expertise innovation corporate bonds, with a cumulative authorised scale surpassing RMB 100 billion. (*44*) issuance channels, Sci-Tech Bonds issued by securities firms exhibit a dual-market method, working concurrently within the interbank market and the trade market.
In phrases of authorised scale, main securities firms maintain a major benefit, with particular person quotas usually reaching the lots of of billions stage. Among them, CITIC Securities and Guotai Junan Securities had been respectively authorised by the CSRC and the PBOC, every receiving issuance quotas not exceeding RMB 150 billion, tying for the highest place available in the market. Huatai Securities additionally confirmed energetic participation, securing approval from each the PBOC and the CSRC to problem two tranches of sci-tech innovation bonds, every not exceeding RMB 100 billion. CICC was equally authorised for 2 tranches, with respective scales not exceeding RMB 100 billion and RMB 98 billion. CITIC Securities acquired separate approvals for quotas not exceeding RMB 80 billion (CSRC) and RMB 60 billion (PBOC). Additionally, East Money Securities was authorised for a quota not exceeding RMB 10 billion.
From the angle of regulatory approval entities, each the PBOC and the CSRC collectively participated within the entry approval course of for this spherical of sci-tech innovation bonds issued by securities firms, reflecting the collaborative efforts of monetary regulators in supporting the event of such bonds. Specifically, establishments like CITIC Securities, CITIC Securities Investment, Huatai Securities, CICC, and Guotai Junan all acquired approval from each regulatory our bodies, demonstrating the systematic and versatile nature of their issuance preparations.
Issuance scale is predicted to proceed rising.
Since June 18, 2025, when Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), clearly acknowledged on the Lujiazui Forum that “sci-tech innovation bonds should be vigorously developed, and the launch of sci-tech innovation bond ETFs should be expedited,” the sci-tech innovation bond market has entered a quick observe of growth. Under coverage steering, the primary batch of 10 sci-tech innovation bond ETFs had been swiftly submitted for approval and efficiently issued and listed in July of the identical 12 months. This was intently adopted by a second wave of product filings in August, constantly injecting incremental capital into the market.
As of the top of September 2025, the overall scale of the primary batch of 10 sci-tech innovation bond ETFs had exceeded RMB 120 billion, whereas the dimensions of the second batch of 14 merchandise additionally surpassed RMB 100 billion. The mixed scale of the 2 batches exceeded RMB 230 billion, considerably broadening the channels for buyers to take part within the sci-tech innovation bond market and taking part in a key position in enhancing general liquidity for these bonds.
The funding banking division of First Capital Securities analyzed that the concentrated position-building actions of sci-tech innovation bond ETFs could create sure valuation spreads between sci-tech innovation bonds and non-sci-tech innovation bonds issued by the identical issuer. As ETFs proceed to launch demand for element bonds, there stays room for additional compression within the valuation of sci-tech innovation bonds. Benefiting from the improved liquidity supplied by ETFs and assist for issuance charges, it’s anticipated that the issuance scale of sci-tech innovation bonds will proceed to indicate substantial progress sooner or later.
An funding banking skilled from one other main securities agency additionally shared the same view, noting that beneath the backdrop of steady coverage assist and the continued enchancment of market mechanisms, the sci-tech innovation bond market is exhibiting a wholesome growth pattern characterised by more and more various issuers, an optimized investor construction, and fast market enlargement. Looking forward, the issuance of sci-tech innovation bonds nonetheless holds appreciable room for incremental progress.