China's Ministry of Finance has announced it will issue 30
billion yuan (US$3.75 billion) worth of certificate treasury bonds
next month, the first batch of its kind to be issued this year.
The T-bonds include 21 billion yuan with a maturity term of
three years and an annual par interest rate of 3.39 percent, and 9
billion yuan with a five-year term and a 3.81 percent annual par
interest rate, the ministry said.
The public will be able to purchase them between March 1 and 31
at the retailing outlets of 40 designated underwriting
institutions, including the Industrial and Commercial Bank of
China, the Agricultural Bank of China, the Bank of China, and the
China Construction Bank, as well as some other commercial
banks.
The purchasers must use real names to buy the bonds, which can
be mortgaged for loans but not be transferred, said the
ministry.
China plans to cut the issuance of treasury bonds this year by a
"modest" amount, according to Han Yongwen, secretary-general of the
National Development and Reform Commission.
The government is focused on reducing its financial deficit and
expanding channels for direct financing, Han added. To aid in these
efforts, the stock market will be further regulated and developed
and citizens will be encouraged to invest their savings in shares
or corporate bonds.
(Xinhua News Agency February 27, 2007)