China to issue 45 billion yuan in Treasury-bonds

01 Mar, 2004

China's Ministry of Finance will issue 45 billion yuan ($5.44 billion) in treasury bonds from March 1 to cover budgetary needs, state media said.
The government will issue 31.5 billion yuan in three-year bonds with an annual coupon of 2.52 percent and 13.5 billion yuan in five-year bonds with a yearly coupon of 2.83 percent, the official China Securities Journal said.
China issued a record 628.3 billion yuan in T-bonds last year, against an earlier estimate of 627.9 billion yuan, to help bridge up the country's rising budgetary deficit and fund rapid growing demand from infrastructure.
The country is well into its sixth year of generous state spending. The government had set a record budget deficit of 391.8 billion yuan for 2003.
Earlier this month HSBC Holdings Plc became the first foreign bank to win approval to underwrite China government debt issues, responding to growing client interest in yuan bonds.

Read Comments