Judging from the recent practice of credit bonds, the purpose of some urban investment companies is to "borrow new and repay old", that is, to issue new corporate bonds to repay existing corporate bonds. According to the exchange's regulatory rules, if indicators such as the prop

From the recent practice of credit bonds, the purpose of part urban investment company issuance of bonds is " borrow new and repay old ", that is, issuing new corporate bonds to repay extant corporate bonds . According to the exchange's regulatory rules, if triggers indicators such as the proportion of non-operating other receivables or the proportion of non-standard financing , some urban investment companies can only use to borrow new and repay old. Of course, "borrow new and return old" is only applicable to some urban investment companies in some areas, and is not applicable to all urban investment companies . So what does the policy of "borrowing new and repaying old" mean for urban investment companies? This article analyzes from three levels:

1. "borrow new and repay old" is actually a good thing for the municipal bonds issued by urban investment companies. Because of the existence of the policy of "borrowing new and repaying old" means that the credit bonds of urban investment companies have become "perpetual bonds" to a certain extent and can be repaid by the new issuance of bonds after maturity. Of course, the premise defined as a favorable one is the existence of the "borrow new and repay old" policy. If this policy is terminated or modified, it needs to be re-analysed.

2. "borrow new and return old" is considered a half good for urban investment companies' non-standard financing . The existence of the "borrow new and repay old" policy means that the key task of urban investment companies' financing will be to ensure the smooth flow of non-standard financing channels and ensure that non-standard financing does not have any problems. However, this is only half a favorable thing for the non-standard financing of urban investment companies, because urban investment companies that apply the "borrow new and repay old" policy generally trigger some financial indicator restrictions or have hidden debt problems, so there is a certain difficulty in financing. Even non-standard financing is difficult. Moreover, the review of some non-standard financing will also pay attention to the bond issuance data of urban investment companies.

3. "borrow new and return old" is actually a bad news for urban investment companies themselves. Although the "borrowing new and repaying old" policy can solve the problem of credit bond financing, it also means that urban investment companies cannot add new credit bond scale, cannot use bonds to repay interest-based debts or make up for flows, which to a certain extent limits urban investment companies' financing channels. Under the restrictions of Document No. 15, it is also very difficult for urban investment companies to add flow loan . In this case, if the urban investment company wants to obtain flexible funds, it can only add new financing through non-standard financing. Although the use of non-standard financing is relatively flexible, the cost of non-standard financing is relatively high, which actually increases financial costs for urban investment companies.