Market forecasts had centred around 3.78 percent and ranged from 3.68 to 3.85 percent.

The result was significantly above Tuesday's indicative secondary market yield of 3.7381 percent bid for seven-year financial bonds issued by policy banks.

CDB also auctioned 10 billion yuan of five-year floating rate bonds at a coupon of 63 basis points over the one-year deposit rate, traders said, below market forecasts.

Traders' expectations had centred around 69 bps and ranged from 65 bps to 71 bps above the one-year deposit rate.