Since its official launch on May 7, the bond market’s dedicated “Tech Board” for Science and Technology Innovation Bonds (referred to as “STIB”) has shown remarkable growth. Wind data reveals that between May 7 and June 5, a total of 202 STIBs were issued across the market, with cumulative issuance exceeding 388.3 billion yuan. An additional six STIBs are scheduled for issuance between June 6 and June 10.
Financial Institutions Lead Issuance Activity
Banks have emerged as the dominant players in STIB issuance. During the observed period, 16 banks issued 20 STIBs totaling 201 billion yuan—accounting for over half of the total issuance volume. Non-bank financial institutions, including securities firms and private equity investment entities, collectively issued 32.4 billion yuan worth of STIBs.
Growing Participation Among Banks
Chongqing Bank recently announced plans to issue its first STIB series, with a 3-billion-yuan, 5-year bond slated for issuance between June 5-9. Proceeds will be exclusively allocated to support science and technology innovation projects.
Notably, the 16 participating banks have demonstrated varied issuance characteristics:
- Policy banks led with 20 billion yuan issuance
- Five major state-owned commercial banks collectively issued 110 billion yuan
- Five joint-stock commercial banks issued 45 billion yuan
- Five regional city commercial banks contributed 26 billion yuan
This trend appears set to continue, with Huaxia Bank and Nanjing Bank preparing 5-billion-yuan STIB issuances on June 9 and 10 respectively.
Financial Institutions Drive Market Development
Liao Zhiming’s fixed income team at Huayuan Securities notes that banks play a pivotal role in channeling financial resources toward the real economy. Their participation in STIB issuance helps direct long-term capital from sources like social security funds and insurance capital toward technological innovation.
“Banks have become the main force in serving tech innovation enterprises through substantial STIB issuance,” said Lou Feipeng, researcher at Postal Savings Bank of China.
Comprehensive Financial Services Support Tech Board Growth
Beyond primary issuance, banks are actively participating in multiple market roles:
- SPD Bank pioneered market-making services for STIBs on May 19
- Industrial Bank executed the first STIB lending transaction on Shenzhen Stock Exchange
- China Zheshang Bank launched a specialized basket product for Zhejiang-based tech firms
- China Guangfa Bank completed innovative credit derivative transactions linked to STIBs
Industry experts observe that coordinated participation from financial institutions, investment firms, and tech enterprises is creating a value cycle of “financial support-industrial value creation-capital returns,” effectively propelling the STIB market’s development.
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