Ningbo in the eastern province of Zhejiang, is set to become China’s first city to sell local government bonds to retail investors via bank counters, part of an official effort to boost demand for the securities, said Caixin.
Ningbo plans to sell a three-year special-purpose bond worth up to RMB 840 million ($125.1 million) to raise funds to purchase land reserves, the city’s fiscal authority announced last week.
The issuance will include up to RMB 300 million in notes that will be offered to individual and small institutional investors in the province, available at the bank counters of Industrial and Commercial Bank of China (ICBC), China Construction Bank, Agricultural Bank of China and Bank of Ningbo.
In November, the People’s Bank of China, the Ministry of Finance, and the China Banking and Insurance Regulatory Commission permitted outstanding local government bonds to be sold over bank counters, opening the RMB 18.3 trillion market wider to retail investors.
Ningbo in the eastern province of Zhejiang, is set to become China’s first city to sell local government bonds to retail investors via bank counters, part of an official effort to boost demand for the securities.
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