Project Name Innovative Small and Medium-Sized Enterprise Bond Financing and Investor Protection Mechanism
Project Number 46023-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8461-PRC: Innovative Small and Medium-Sized Enterprise Bond Financing and Investor Protection Mechanism
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Finance - Finance sector development - Money and capital markets

Industry and trade - Small and medium enterprise development

Gender Equity and Mainstreaming
Description The TA will help the government formulate strategies and implement concrete programs to promote SMEs' access to finance by developing high yield bond market and appropriate investor protection mechanism. The TA will conduct a study on overall SME bond financing in PRC and international best practices to identify preconditions for successful development of high yield bond market. Based on this study, a roadmap for establishing effective policy measures will be prepared for high yield bond market development. Measures for diversifying and expanding investor base, building a proper legal framework, and designing a harmonized regulatory enforcement system will be explored and recommended. The TA will also explore possible investor protection mechanism through the comprehensive study on advanced economies with different legal system. Finally, the TA will also provide capacity building activities for relevant authorities and promote knowledge sharing through an international conference.
Project Rationale and Linkage to Country/Regional Strategy
Impact Increased access to finance for SMEs

Project Outcome

Description of Outcome Development of a high-yield bond market and an enhanced investor protection mechanism in the PRC
Progress Toward Outcome The recruiting process has been finalized. The inception meeting and consultation meetings have been conducted. The inception report has been submitted and approved. The second mission was fielded in August 2015 for further consultation and fact finding. The draft final report will be prepared and circulated by the end of October 2015.
Implementation Progress
Description of Project Outputs

Comprehensive report on innovative SME bond financing

Road map with specific policy measures for development of high-yield bond markets, market infrastructure, and an appropriate legal and appropriate regulatory framework

A research report on appropriate investor protection mechanisms for a high-yield bond market and policy recommendations

Improved capacity of regulatory authorities to develop high-yield bond markets and investor protection mechanisms

Status of Implementation Progress (Outputs, Activities, and Issues) The consultants are mobilized. The inception report has been submitted in March 2015. The second mission was fielded in August 2015 and draft final report was prepared and circulated for comments in May. The report was finalized and two policy notes have been translated in Chinese. The final workshop was held in June 2016 for sharing the output of the TA.
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Ministry of Finance was consulted during the project design.
During Project Implementation Regular meetings and consultations with EA and IAs are undertaken.

Business Opportunities

Consulting Services The individual consultants _two international (8 person-months in total, SME Bond Market Specialist and Capital Market Legal and Regulatory Specialist) and three national consultants (10 person-months in total, Bond Market Specialist, SME Finance Specialist, Financial Data and Information Analyst) will be individually selected and engaged by the Asian Development Bank (ADB) in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time) and arrangements satisfactory to ADB for the engagement of national consultants.

Responsible Staff

Responsible ADB Officer Lee, Seung Min
Responsible ADB Department East Asia Department
Responsible ADB Division Public Mgt, Financial Sector and Regional Coop Division, EARD
Executing Agencies
China Securities Regulatory Commission (CSRC)
5th floor, Office Bldg., Poly Plaza Bldg
No. 14 Dongzimen Nan Da Jie, Beijing
People's Republic of China


Concept Clearance 05 Sep 2013
Fact Finding 13 Aug 2013 to 13 Aug 2013
Approval 25 Sep 2013
Last Review Mission -
Last PDS Update 21 Sep 2016

TA 8461-PRC

Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2013 16 Jan 2014 16 Jan 2014 30 Jun 2015 30 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 40,000.00 0.00 0.00 0.00 440,000.00 25 Sep 2013 220,137.60

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