China has begun to issue 30.8 billion yuan (US$3.85 billion) worth of book-entry treasury bonds with terms of maturity of five years. The T-bonds, the fifth batch of its kind issued this year, carry an annual par interest rate of 2.40 percent, the Ministry of Finance said in a statement.

The issue of the T-bonds, whose interest will be calculated from May 16, will be completed by May 19, said the ministry.

The ministry said the T-bonds are available to investors with accounts for investment in fund, share and bonds investment at China Securities Depository and Clearing Co. or China Treasury Bonds Depository and Clearing Co.

The bonds will also be floated for cash trading from May 25 at the national inter-bank bonds markets or the stock markets.

The ministry said that 31 of the 60 members of those selected through public bidding as underwriting institutions were awarded the rights to distribute the T-bonds.

Major underwriters for the issue of the T-bonds include the Bank of Communications, the Bank of China and the Bank of Shanghai.

(Xinhua News Agency May 16, 2006)