? ?
BIZCHINA / Center
China issues 600 billion yuan of special T-bonds
(Xinhua)
Updated: 2007-08-29 16:08
China began to issue 600 billion yuan (US$67.79 billion) of bonds on
Wednesday in the first tranche of 1.55 trillion yuan basket of special
treasury bonds.
Related readings:
?China to issue 600b yuan special T-bonds
?China to float three-year T-bonds
?Ministry assures bonds not to cool stock market
?Special bonds have no grave impact on financial market
The China Securities Journal quoted authoritative sources as saying that
the annual interest rate of the bonds would be around 4.3 percent,
basically matching the market rate for long-term debt.
The report said the outstanding terms of the bonds would be ten years and
15 years.
Market observers held that the interest rate for the 35 billion yuan of
central bank bills issued on Tuesday was fairly high at 3.3165 percent,
raising the cost for the central bank to call back excessive liquidity,
and this month was a peak period for maturing central bank bills.
They said the central bank very likely would replace maturing bills with
the newly issued bonds, which would have little impact on market
liquidity.
The government plans to launch a State forex investment company to make
better use of the country's huge foreign exchange reserve. The forex
investment company, still in preparation, made its first investment in
non-voting shares, valued at?US$3 billion, in the US private equity firm,
the Blackstone Group.
At the end of June, China's top legislature had approved the issuance of
1.55 trillion yuan of special treasury bonds by the Ministry of Finance
to buy US$200 billion?forex reserve to finance the state forex reserve
company.
A spokesman for the Ministry of Finance said the issuance of the bonds
would not directly affect money supply in the market.
(For more biz stories, please visit Industry Updates)
Learn Chinese online
No comments:
Post a Comment