To follow the relevant instructions of the CPC Central Committee and the State Council on deepening the reform of systems and mechanisms to accelerate the implementation of innovation-driven development strategies, direct allocation of financial resources to the technology sector, promote the supply-side structural reform, and give play to the positive role of the debt financing instrument market in supporting the development of start-up and innovative businesses and serving the real economy, CFAE has actively coordinated with NAFMII on innovating in debt financing instruments specific to business startups and innovation. On April 25th, 2017, the registration for the first such instruments was completed. On May 8th, 2017, Chengdu Hi-Tech Investment Group Co., Ltd. 2017 Debt Financing Instrument Specific to Business Startups and Innovations (Series 1) was successfully issued after completing book-building procedures on CFAE, which was the first deal of its kind.

  The debt financing instruments specific to business startups and innovation refer to debt financing instruments where funds raised will be directly used to support the development of start-up and innovative businesses through the investment-bond linkage model, which are designed to meet the financing demand of start-up and innovative businesses, help business reduce start-up risks and innovation costs and support the development of start-up and innovative businesses. The debt financing instruments specific to business startups and innovation are intended to explore a new way of integrated development of small-, medium- and large-sized businesses through innovation in financing model and mechanism, so as to give play to the radiating role of park-based businesses, attract a great number of start-up and innovative businesses to become an innovation community by leveraging fund inputs, and facilitate the formation of an industrial ecosystem where participants complement each other with their respective advantages, serve each other and share benefits in the clusters of start-up and innovation resources. 

Chengdu Hi-Tech Investment Debt Financing Instrument Specific to Business Startups and Innovations had a registered amount of RMB 1 billion, the first issue of which was RMB 500 million for a maturity of 5 years at an issue rate of 5.6% and attracted 7 private placement investors, receiving wide recognition from investors in the inter-bank bond market. Of the funds raised, RMB 900 million would be used for bank loan repayments and the construction of the Incubation Park, and the remaining RMB 100 million would be invested in equity of 11 innovative businesses from the emerging industries of strategic importance, such as biopharma, high-end equipment manufacturing, internet software development, and energy conservation & environmental protection, as direct support for technology innovation and development of start-up and innovative businesses in Chengdu Hi-Tech Industrial Development Zone. The first-ever Debt Financing Instrument Specific to Business Startups and Innovations issued in the inter-bank market was an innovation of debt financing instruments in financial service model for start-ups and innovative businesses, which was of great significance to directing allocation of financial resources to the technology sector and giving play to the role of the inter-bank market in supporting the development of start-up and innovative businesses.