China's Ministry of Finance has announced it will issue 30 billion yuan (US$3.75 billion) worth of certificate treasury bonds next month, the first batch of its kind to be issued this year.

 

The T-bonds include 21 billion yuan with a maturity term of three years and an annual par interest rate of 3.39 percent, and 9 billion yuan with a five-year term and a 3.81 percent annual par interest rate, the ministry said.

 

The public will be able to purchase them between March 1 and 31 at the retailing outlets of 40 designated underwriting institutions, including the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, and the China Construction Bank, as well as some other commercial banks.

 

The purchasers must use real names to buy the bonds, which can be mortgaged for loans but not be transferred, said the ministry.

 

China plans to cut the issuance of treasury bonds this year by a "modest" amount, according to Han Yongwen, secretary-general of the National Development and Reform Commission.

 

The government is focused on reducing its financial deficit and expanding channels for direct financing, Han added. To aid in these efforts, the stock market will be further regulated and developed and citizens will be encouraged to invest their savings in shares or corporate bonds.

 

(Xinhua News Agency February 27, 2007)