China said on Thursday that it had issued 1.8 trillion yuan
(US$233.8 billion) of central bank notes in the first quarter,
accounting for 85.7 percent of the total bonds issued in the same
period.
The increase in central bank notes issued sent the
RMB-denominated bonds issued at the inter-bank market up by 37.47
percent.
However, despite the country's efforts to tame liquidity, the
country reported last Thursday a higher-than-expected growth rate
of 11.1 percent for the first quarter.
Premier Wen Jiabao said later on the same day that China should
curb the excessive supply of money and credit, strengthen
supervision of cross-border flows of short-term capital and improve
foreign currency management in addressing the issue of excess
liquidity .
The country issued bonds worth 2.1 trillion yuan at the
inter-bank market in the first three months, according to the
People's Bank of China.
The rest included 86 billion yuan of book-entry treasury bonds
issued by the Ministry of Finance, 117.1 billion yuan of financial
bonds issued by the policy banks and commercial banks and another
62.1 billion yuan of short-term financing bonds issued by
enterprises.
The inter-bank bond market, launched in the first half of 1997,
is an important player in the Chinese bond market and in the
financing of the government, financial institutions and
enterprises, with nearly 6,000 various institutions operating on
the market.
(Xinhua News Agency April 27, 2007)