Bonds News
- Govt. plans gradual sale of special bonds
Date: 3-Jul-2007 Sources: (Shenzhen Daily)
THE government's sale of 1.55 trillion yuan (US$203.6 billion) in special domestic bonds to finance its fledgling overseas investment agency will be carried out in stages, a senior central bank official said in remarks reported yesterday.
The country's stock market has been hit by the planned bond issue, approved by the Standing Committee of the National People's Congress on Friday, as investors fear it will pull funds from the market.
'The plan will be carried out gradually according to its monetary policy,'Yi Gang, assistant governor of the People's Bank of China, told the Shanghai Securities News. Yi reiterated the Finance Ministry's view that the bond issue would have only a neutral impact on the domestic economy, the newspaper said.
The Finance Ministry indicated on its Web site Friday that it would issue the bonds directly to the central bank in exchange for part of the US$1.2 trillion in foreign currency reserves under the central bank's control.
No specific timetable was given for the sale of the bonds, but the increase in this year's debt ceiling suggests they will all be issued this year.
The China Daily said the first bonds were likely to be issued this month. It gave no source for its report.
The English-language newspaper said the sovereign wealth fund would be named China Investment Co. and would formally begin operations in September after registering in August.
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