Enterprises show more interest in direct financing

Enterprises have showed more interest in direct financing such as bond issuance, according to a statement released by the National Association of Financial Market Institutional Investors on Wednesday.

As of the end of November, bond issuance through the Chinese inter-bank market this year totaled 7 trillion yuan ($1.12 trillion), making up 15 percent of GDP during the same period, the statement said.

Transactions made through the market reached 240 trillion yuan, around 6.8 times of GDP.

The proportion of indirect financing to total financing dropped 84 percent from January to October. Debt financing accounted for 89 percent of total financing during the same period.

By the end of November, outstanding bonds issued by non-financial enterprises registered at the association exceeded 4.1 trillion yuan, up 1.1 trillion yuan from the end of 2011, the statement said. The issuance accounted for 8 percent of aggregate social financing.

From the beginning of January to the end of November, bond issuance conducted by these enterprises reached 2.5 trillion yuan, according to the association.