The use of international financing

Attracting foreign investment through multiple channels and actively and steadily cultivating the domestic capital market is one of my country's strategies for economic development. In order to better develop the economy, our country not only raises funds extensively domestically, but also uses international financing as an important way to raise funds. Our country mainly adopts financing methods such as foreign direct investment, loans from international financial institutions, loans from international commercial banks, international bonds, and international stocks.

my country’s issuance of international bonds began on January 22, 1982. China International Trust and Investment Corporation first issued a 10 billion yen private placement bond in the Japanese bond market with a term of 12 years and a grace period of 5 years from 1982 The annual interest rate will be 8.7% starting from January 29. After a grace period, the annual repayment will be 8%. In the following years, China has been very active in the international bond market. At this stage, the issuance conditions are good and the interest rate is close to the London Interbank Offered Rate. The term is generally more than 7 years.

my country’s use of stocks for international financing began with the issuance of B shares in Shanghai and Shenzhen in 1991. By the end of 1994, there were more than 50 listed companies issuing B shares to overseas investors and going public. The total amount reached more than 3 billion yuan, raising hundreds of millions of dollars in foreign investment. At present, the RMB special stocks (B shares) issued by Chinese enterprises, H shares and red chip stocks listed in Hong Kong, N shares listed in the United States, L shares listed in the UK and S shares listed in Singapore are all international stocks.

In order to promote the development of international financing in my country and better play the role of direct financing and indirect financing, the management of foreign direct investment and foreign debt should be further strengthened and improved. It is necessary to further improve the orientation of foreign investment and guide more foreign investment to the central and western regions, infrastructure, pillar industries and high-tech industries; in terms of foreign borrowing, it is necessary to further strengthen and strengthen planning management, debt monitoring, loan use, and management regulations. improve.