NAFMII: Non-Financial Corporate Debt-Financing Instruments - 银行间债券市场非金融企业债务融资工具管理办法
Released on April 9, 2008, and effective on April 15, 2008
Since the People's Bank of China (the "PBOC") promulgated the "Measures on the Administration of Non-Financial Corporate Debt-Financing Instruments at the Inter-Bank Bond Market" (银行间债券市场非金融企业债务融资工具管理办法, the "Measures") in April 2008, the National Association of Financial Market Institutional Investors (中国银行间市场交易商协会, "NAFMII"), as the self-regulatory and authorized registration entity of the debt-financing instruments (the "DFI") under the Measures, has promulgated several detailed rules on the administration of DFI. Recently, NAFMII issued another two rules on DFI transaction, which include:
1. The Practice Guideline of Medium Term Notes Issued by Non-Financial Corporate at the Inter-Bank Bond Market (银行间债券市场非金融企业中期票据业务指引)
2. The Practice Guideline of Short Term Financing Bonds Issued by Non-Financial Corporate at the Inter-Bank Bond Market (银行间债券市场非金融企业短期融资券业务指引)
These rules further clarify the definitions of relevant DFI products, and the detailed requirements on the DFI's issuance, use, information disclosure, underwriting, rating and transaction.
Up until the end of November 2009, nearly 500 non-financial enterprises have issued more than 1,200 DFI of more than RMB 2.3 trillion. Because of the convenience and low requirements of issuance, DFI is becoming more and more popular. However, in practice, most of DFI issuers are large, state-owned enterprises or listed enterprises, while small and medium enterprises have to face practicable obstacles to use DFI. Moreover, although there is no restriction in the Measures or other rules for foreign-invested enterprises ("FIE") to use DFI, in practice, there is still no successful case. With the development of DFI market, we expect that the small and medium enterprises, as well as FIEs, can also get financing help by using DFI.