China to explore setting up high-yield bond platform to meet smaller companies’ fundraising needs – PBOC official

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

China will explore setting up a special platform for high-yield bonds that cater to the fundraising needs of small and medium-sized technology companies and to the investors willing to take on more risk in return for higher yields, said Zhang Qingsong ,the deputy governor of the PBOC.

The country’s financial regulators will also take measures to provide more resources and raise the profile of science and tech startups in the bond market, Zhang said.

Tech startups often face challenges in getting the funding they need to develop due to the huge sums involved, the high risk and the lack of pledgeable assets. They also have a high threshold for bond issuance and in normal circumstances the bond market can only play a limited role in their direct financing.