The Study On Patterns And Supervisions Regards To Overseas Sukuk Issuance Of Domestic Enterprises

With the rapid development of Islamic Finance and high speed growth of Islamic financial market volume, the amount of capital and its huge potential have prompted lots of countries to try to make a Islamic Financial Center. What is noteworthy is that sukuk is attracting attention of global capital markets as one of the most successful Islamic financial instruments.In recent years, difficulty in financing in private, middle or small-sized enterprises and lack of local government financial support for urban infrastructure and public service construction has become an indisputable fact, due to the domestic further tightening of financing channels. At present, the local governments and enterprises want to issue overseas bonds to break through this obstacle which have got exciting rewards. Along with in-depth of the implementation of the One Belt One Road strategy, our country will have more close cooperation relationship with Islamic world. At the same time, overseas sukuk issuance for cross-border financing has been a possible based on current overseas bonds issuance policy and supervision system reform.Besides introduction and epilogue, the dissertation is divided into four parts.The first part is the summary of sukuk. As a financial instrument belongs to Islamic Financial System, sukuk should be restricted by Islam and Sharia which are the two religious pillars of Islamic Finance. In the Islamic Financial System, prohibited financial interest, limited speculative behavior and risk-sharing are basic principles that sukuk should also stick up for. As a result, sukuk presents relevant clearly distinguishable features against the traditional bonds.The second part is about study on the patterns regards to overseas sukuk issuance of domestic enterprises. The patterns include operation modes of sukuk and patterns of overseas bonds issuance. Due to the variety of sukuk there are complex legal relationships in the unique operation modes. In addition, the patterns of overseas bonds issuance changes with the policy and supervision. Therefore, enterprises in our country should combine both patterns to get cross-border financing and have a clear understanding of legal problems in patterns of overseas Sukuk issuance.The third part is a research on supervisions of main sukuk markets. When domestic enterprises issue the sukuk aboard they not only need to know unique different deal structure and legal relation of sukuk, but also knows the patterns about overseas bonds issuance on legal views. In addition, these are the major consideration for issuer to choose and issue the sukuk, for instance, legal problems about issuance and trading, overseas sukuk markets, regulatory system and supervision system of overseas bonds markets, and legal restraint of Shariah Advisory Council and Islamic Financial Standards and so on.The last part corresponds to the third. Accord to the supervision of our country, overseas bonds issuance of domestic enterprises also should abide by the domestic law and relevant supervision except for them in host countries. At present, the reform of domestic supervision system on overseas bonds issuance has laid the foundation of cross-border financing through sukuk. In summary, our supervision organization should put the reform efforts into practice and improve current supervision system for utilizing Islamic investment, supporting the development of national economy, assuring the raise of funds on the international financial market based on a plan, making a rational arrangement for use of borrowed funds and strengthening the control of issuing bonds abroad.