China is inviting more retail investors into its RMB 33.5 trillion government bond market, in a bid to deepen liquidity while also boosting the sale of bonds that are fueling a rebound in the world’s second biggest economy this year, said the Financial Times.
The ministry of finance in Beijing said that it would extend the period during which individual investors can buy savings bonds from the usual 10 days to the entire month of April.
The move comes as the country seeks to give ordinary Chinese people more options for investing their savings, following a government clampdown last year on runaway growth in wealth management products.
The expansion of retail investment in government savings bonds forms part of a greater effort by the authorities to expand and diversify the market in the hopes of alleviating some of the pressure caused by government debt.
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