China Backs Second Batch of $131 Million Bond Issuance by Private Equity Firms
Listen to the full version
Four Chinese private equity firms are preparing to issue 930 million yuan ($131 million) in sci-tech innovation bonds, backed by a state-run risk-sharing mechanism, expanding a government push to ease funding bottlenecks for tech-focused private investors and steer long-term capital into strategic sectors.
This issuance marks the second time that private venture capital firms have tapped China’s interbank bond market under a People’s Bank of China (PBOC) initiative aimed at easing financing costs and lengthening debt maturities for backers of early-stage hard tech ventures.
The firms — Costone Asset Management Co. Ltd, Cowin Capital Group, Peakview Capital Investment Management Co. Ltd., and Shanghai Daohe Long-term Investment Management Co. Ltd. — held roadshows in Beijing on Monday to promote the deal. The bonds are guaranteed by China Bond Insurance Co. Ltd., which provides credit enhancement, while the venture firms offer counter-guarantees using either their equity holdings or company shares.
Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.
Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.
- RELATED
- DIGEST HUB
Digest Hub
Back
- Four Chinese private equity firms plan to issue 930 million yuan ($131 million) in sci-tech innovation bonds, backed by a state risk-sharing mechanism to support long-term tech investment.
- The initiative, under the People's Bank of China, allows bond maturities up to 10 years and lower interest rates, addressing past funding challenges for private VCs.
- Since launch, 107.4 billion yuan in such bonds have been issued by 55 private firms, representing 88% of private-sector sci-tech bond issuance.
- Costone Asset Management Co. Ltd
- Costone Asset Management Co. Ltd. is one of four Chinese private equity firms preparing to issue 930 million yuan ($131 million) in sci-tech innovation bonds. This initiative, backed by a state-run risk-sharing mechanism, aims to provide long-term, low-cost funding for tech-focused private investors. Its president, Wang Qiwen, noted that interest rates under this program are significantly lower than previous rates.
- Cowin Capital Group
- Cowin Capital Group is a Chinese private equity firm. It is one of four firms preparing to issue 930 million yuan ($131 million) in sci-tech innovation bonds. A partner at Cowin Capital, Tang Zhongcheng, noted that this new bond framework allows for maturities of up to 10 years, which better suits the long development cycles of hard tech startups.
- Peakview Capital Investment Management Co. Ltd.
- Peakview Capital Investment Management Co. Ltd. is one of four Chinese private equity firms issuing 930 million yuan in sci-tech innovation bonds. The firm, represented by its president Liu Haofei, secured a AAA bond rating due to government policy backing, allowing access to institutional investors like insurance firms and state-owned limited partners.
- Shanghai Daohe Long-term Investment Management Co. Ltd.
- Shanghai Daohe Long-term Investment Management Co. Ltd. is one of four Chinese private equity firms preparing to issue 930 million yuan ($131 million) in sci-tech innovation bonds. These bonds are backed by a state-run risk-sharing mechanism and aim to ease funding bottlenecks for tech-focused private investors.
- China Bond Insurance Co. Ltd.
- China Bond Insurance Co. Ltd. provides credit enhancement for the sci-tech innovation bonds issued by private equity firms. The company guarantees these bonds, which helps to ease funding bottlenecks for tech-focused private investors and channel long-term capital into strategic sectors.
- Legend Capital
- Legend Capital (君联资本) was one of five firms in the first round of China's sci-tech innovation bond program. This initiative, backed by the People's Bank of China, aims to provide long-term, low-cost funding for private venture capital firms investing in early-stage hard tech ventures. The program has enabled firms like Legend Capital to deploy capital into sectors such as artificial intelligence and advanced materials.
- CAS Star
- CAS Star (中科创星) participated in the first round of China's sci-tech innovation bond program. According to Guo Yifeng, a finance executive at the firm, the bond issuance strengthened CAS Star's capital foundation and broadened its access to investment capital, accelerating the launch of new funds. This initiative provided CAS Star with its first opportunity to obtain high-grade credit ratings.
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新