Shenzhen firms propose joint bond

SHANGHAI: In an unprecedented move, 20 small and medium-sized enterprises (SMEs) in Shenzhen have proposed to jointly raise a total of 1.03 billion yuan in a bond issue.

"Twenty SMEs in Shenzhen are expected to jointly issue bonds in mid-October," said Chen Fang, a senior executive at the Shenzhen Small and Medium-sized Business Center, an affiliate of Shenzhen government. "We have completed the preparation work for the bond issue."

Analysts and experts said the concept of joint bond issuance is expected to offer SMEs more opportunities and options to raise new capital directly in the capital market. An SME by itself would not normally have the financial clout and business track record to issue bonds at bearable costs.