| |
 |
T bonds issued
|
CHINA'S financial authorities issued the country's first batch of long-term treasury bonds on Wednesday in a move economists claim was long overdue.
The Ministry of Finance on Wednesday started issuing 12 billion yuan (US$1.4 billion) worth of 15-year fixed-interest bonds to institutional investors.
The bonds, which carry an annual interest rate of 4.69 per cent, will be traded on the inter-bank bond market after the issuance is completed on June 12.
“It is a signal that the Chinese Government has started to diversify its bond varieties,” said Dong Chen, analyst with China Securities.
Prior to the issue, China's bonds market lacked both short-term (less than one year) and long-term (more than 10 years) treasury bonds.
This has been a problem, Dong said, because the country depends heavily on treasury bonds in pursuing a pro-active fiscal policy to fuel the economy.
Dong explained that short-term bonds are beneficial because they increase the liquidity of the bond market, helping it to grow, while long-term bonds allow the government to raise money without having to worry about repaying debts in the near future.(SD-Agencies)
|
|
|
|
