China to support direct financing and plans equity exchange in Xiongan new area

BEIJING: China plans to set up equity exchange in Xiongan area, the State Council said on Thursday, in an effort to strengthen support of direct financing in the new economic zone.

China also encourages local bond issues with maturity of 10 years and above in the Xiongan new area for its construction in the context of curbing accumulated hidden local government debt, the cabinet said in guidelines posted on its website.

Qualified companies in the economic zone will be given priority to go public, conduct merger and acquisitions, issue bonds as well as securitisation, according to the guideline.