Bonds News
- First batch of special bonds to be issued
Date: 6-Jul-2007 Sources: (Shenzhen Daily)
THE Ministry of Finance will soon kick off the sale of 500 billion yuan (US$65.82 billion) in bonds, as the first batch of its planned 1.55 trillion yuan special bonds, the China Business News reported Thursday.
The ministry has submitted an application to the State Council, or Cabinet, to launch the first-tranche offer, the Shanghai-based newspaper quoted unnamed sources as saying.
The remaining more than 1 trillion yuan bonds should be issued in two batches, with each averaging around 500 billion yuan, according to the need of China's new overseas investment agency, the report said.
The proceeds raised from the bond issue will be used to fund the establishment of the investment agency, which will help invest part of China's ballooning foreign exchange reserves in overseas markets.
The newspaper quoted an unnamed Ministry of Finance official as saying the bonds would not be issued directly to the People's Bank of China, or central bank, although the offer would lead to an increase in the amount of bonds held by the central bank.
Similar remarks by an unnamed Ministry of Finance official were also published in the Shanghai Securities News.
Li Yang, an economist with the Chinese Academy of Social Sciences, was quoted in the reports as saying that the bonds would be issued directly to a domestic financial institution. But he did not elaborate.
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