Support From Stock Exchange
The Shanghai Stock Exchange (SSE) stepped up efforts to support China’s fight against the novel coronavirus epidemic.
The SSE encouraged enterprises in the field of technological innovation related to epidemic prevention and control to be listed on the domestic sci-tech innovation board (STAR), according to a statement on its website.
Firms are encouraged to conduct roadshows through the Internet and phone calls, make timely adjustments to their offering schedules and hold listing ceremonies online, said the exchange.
Noting firms’ difficulties in completing auditing work and disclosing their 2019 annual report and 2020 first-quarter report on time amid the epidemic, the exchange postponed the disclosure of annual reports for more than 70 firms and extended the time limit on mergers and acquisitions.
The SSE also granted special support to Hubei Province, waiving initial listing costs and this year’s annual fee for companies from the region, as well as approving the first exchange-traded fund supporting Hubei’s infrastructure construction.
Enterprises from Hubei and other regions severely affected by the epidemic, as well as companies raising funds for epidemic control, are provided with direct financing and a “green channel” for issuance review of corporate bonds and assetbacked securities. according to a report released by the National Institution for Finance and Development.
The overall debt ratio of households, non-financial enterprises and governments rose to 245.4 percent in 2019, up 6.1 percentage points from the previous year.
The rise followed a debt growth slowdown in 2017 and a leverage level drop in 2018. But the increase rate was much lower than that from 2008 to 2016, providing evidence that the country is determined to deleverage.
The pickup was mainly driven by the household debt ratio, which rose 3.7 percentage points year on year to 55.8 percent in 2019. The debt ratio of the Chinese Government increased 2.1 percentage points during the same period, the report said.
Meanwhile, the non-financial enterprises’ debt ratio went up merely 0.3 percentage point, it said.
With looming downward pressures and the impact from the novel coronavirus outbreak, the report predicted China’s leverage in the real economy would rise by 10 percentage points in 2020.