Recently, a lecture on ‘Finance and Innovation’ organised by the Tangshan Office of Financial Affairs (TOFA) was held at the People’s Conference Centre in Tangshan, Hubei Province. The lecture attracted nearly a hundred audiences from China Development Bank Securities, Shijiazhuang Equity Exchange, subordinate OFAs at districts and counties in Tangshan, urban investment platforms, state-owned enterprises, and listed companies. Dagong was invited to provide a topic training on debt financing and credit rating, which was very well received by the financing platforms and entrepreneurs in Tangshan.
Considering the current development of capital market and the features of local financing platforms, Dagong gave a clear and comprehensive illustration of the corporate bond issuance and the credit rating of financing platforms. It also presented different products and cases according to the debt financing for various types of enterprises. Moreover, Dagong introduced the financing approaches, debt financing costs and issuance prospects of different ratings. It pointed out that the wealth creation capability is the premise for the debt repayment in financing platform. Additionally, in response to the participants’ interests in particular techniques, Dagong provided respective instructions based on the core ideas of Dagong’s Guiding Principles of Credit Rating as well as the logic, key factors, the operation system of local financing platforms, and the indictors for assigning ratings.
Following the reform of financing systems in local governments, financing platforms are transforming from ‘investment & development’ to ‘market operation’. They are also playing a functional role in urban environment protection, industrial innovation and state-owned capitals operations. Dagong, as always, will contribute to the balanced capital flows with independent and impartial ratings, in an effort to facilitate a stable market transformation of financing platform.