Finance ministry issues second special bonds tranche

The Ministry of Finance will issue a second tranche of special treasury bonds worth US$26.7 billion to finance the country's foreign exchange reserves investment firm, state media reported. The bonds will eventually be sold by the central bank to the public, with maturities of more than 10 years. Bonds from the first tranche will be issued later this month in three batches, while second-tranche bonds will be sold in the fourth quarter. The bonds are being issued in batches to ensure market stability. A total of US$200 billion in bonds will be issued by the finance ministry to fund the China Investment Corporation, a state investment fund tasked with managing a portion of the country's US$1.3 trillion foreign exchange reserves.