Central Huijin Reissues RMB26 Billion Government-backed Agency Bonds

On August 28, 2017, Central Huijin issued government-backed agency bonds of RMB26 billion in the national inter-bank bond market, with a term of 5 years and a fixed interest rate of 4.38%. Funds raised from this issuance will be used to repay the matured bonds issued by Central Huijin in 2010. It is learned that this tranche of bonds will be tradable in the market on August 31, 2017.

As at the date of this announcement, 22 financial institutions such as CDB, ICBC, ABC and CCB have agreed to use the government-backed agency bonds issued by Central Huijin as pledged securities for pledged repo, and manage them as interest rate bonds, which will boost their liquidity in the secondary market and their market value.