Chinese Company Raises $350 Million in Digital Yuan for Tech Innovation Bond
A Chinese infrastructure company, Shandong Hi-Speed Group, has successfully raised $350 million in digital yuan for its new technology innovation bond. The bond, named “Shandong Hi-Speed Group Co., Ltd. 2024 Public Offering to Institutional Investors of Science and Technology Innovation Renewable Corporate Bonds (First Phase),” has been listed on the Shanghai Stock Exchange.
Setting a Precedent for Future Financial Products
This bond sets a precedent for future financial products as it is the first tech innovation bond to be raised in digital yuan. With a low coupon rate of 2.94% and a term of 3+N years, it has attracted significant attention. CITIC Securities is the lead underwriter, while GF Securities, Dongxing Securities, Orient Investment Bank, and Huatai United Securities are joint lead underwriters.
Promoting the Adoption of Digital Yuan
To promote the comprehensive adoption of digital yuan, some toll stations affiliated with Shandong Hi-Speed Group have been upgraded to accept digital yuan payments. The issuance of this bond marks the company’s commitment to supporting China’s central bank digital currency.
China’s Continued Efforts in Promoting CBDC
The Chinese government has been actively promoting its digital currency. The comprehensive reform initiative for Shanghai’s Pudong New Area includes a focus on pilot use of digital yuan in various sectors. Additionally, there are plans to establish a “Digital Yuan Adoption Demonstration Zone” in Beijing. These efforts aim to normalize and expand the use of digital yuan in different applications.
Hot Take: Chinese Company Raises $350 Million in Digital Yuan for Tech Innovation Bond
A Chinese infrastructure company, Shandong Hi-Speed Group, has successfully raised $350 million in digital yuan for its new technology innovation bond. This marks a significant milestone in the adoption of digital yuan and sets a precedent for future financial products. The bond has attracted attention due to its low coupon rate and long term. The Chinese government’s continued efforts to promote its central bank digital currency are evident in initiatives such as the comprehensive reform initiative for Shanghai’s Pudong New Area and the establishment of a “Digital Yuan Adoption Demonstration Zone” in Beijing. These efforts aim to broaden the range of applications for digital yuan and encourage its usage among consumers.
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