日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Special treasuries to mitigate COVID-19 pain, funding woes

By Chen Jia | China Daily | Updated: 2020-06-17 09:26
Share
Share - WeChat
China is likely to complete the 1 trillion yuan ($141.3 billion) special issuance of central government bonds to mitigate the economic fallout. [Photo/Sipa]

China is likely to complete the 1 trillion yuan ($141.3 billion) special issuance of central government bonds by the end of July as part of its efforts to mitigate the economic fallout from the novel coronavirus epidemic and ensure sufficient liquidity in the financial sector, said experts.

The first two batches of COVID-19 special treasuries, totaling 100 billion yuan, will be offered for bidding on Thursday. The first batch of bonds will mature in five years, while the remaining will be for a period of seven years, according to a notice released by the Ministry of Finance late on Monday.

The coupon rates and the underwriters of the two batches will be disclosed around the bidding date, and the treasuries will be traded from June 23, the notice said.

People who participated in a preparatory meeting of the issuance told China Daily on Tuesday that all the special treasuries will be publicly issued, and the funds should be raised by the end of July. The central government will repay all the interest and 300 billion yuan of the principal, while the balance 700 billion yuan will be paid by local governments.

A report from China Securities Journal said on Tuesday that individual investors can also purchase the special treasuries once they open an account and trade through the stock exchange system or at the underwriters.

The country's budget reports, which have been approved by the nation's top legislature in May, showed that the COVID-19 central government special bonds "will be mainly used for local public health and other infrastructure construction and epidemic responses, while some funds will be reserved for local governments at the primary level to solve special financing difficulties".

"Efforts will be made to improve coordination and alignment between COVID-19 bonds and other fiscal funds, and more decision-making power will be given to local authorities over the use of funds," the budget reports said.

A senior official of the Ministry of Finance said last week that the ministry would build a new transfer payment mechanism for provincial-level governments to pass the funds on to lower-level governments, while a supervisory system will be established to prevent embezzlement.

The public offering of the COVID-19 treasuries indicates that the Ministry of Finance has refused to monetize the fiscal deficit, a system in which the central bank directly purchases treasuries in the primary market, said Ming Ming, a senior analyst with CITIC Securities. "The government wants to let the market decide the price of the treasuries."

Experts close to the Ministry of Finance said that the "bottom line" has been set by the central bank law and the budget law, which stipulates that the government should not overdraw from the central bank and monetary authorities should not buy government bonds in the primary market.

"But the monetary policy will have to coordinate with the bond issuance, to maintain sufficient liquidity and keep financing costs at a low level," said Ming.

Local government bond issuance rose to 1.3 trillion yuan in May, a monthly record, and led to an upward momentum in bond yields during the past week. On Tuesday, the 10-year treasury bond yields remained almost above 2.8 percent.

Analysts said that the government may need to raise more than 4 trillion yuan from the domestic bond market between June and September, which is a significant amount and the People's Bank of China, the central bank, will have to take measures to facilitate the bond issuance.

Liu Yu, an analyst with GF Securities, said the surge in the bond issuance in the coming weeks may push the central bank to carry out "unexpected" operations, such as cutting interest rates or the reserve requirement ratio, to further ease the monetary policy.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 国产精品原创巨作av | 亚洲午夜免费 | 亚洲色图综合 | 青青草无限次破解版污 | 免费国产黄频在线观看视频 | 我把寡妇日出水好爽视频 | 欧美aⅴ | 久久久国产精品免费观看 | 亚洲www啪成人一区二区麻豆 | 九九国产| 欧美视频在线一区 | 99精品一区二区 | 色综合久久综合欧美综合图片 | 亚洲国产欧洲精品路线久久 | 亚洲一区欧美日韩 | 国产精品天天天天影视 | 国产精品福利在线观看秒播 | 亚洲欧美日韩精品久久亚洲区色播 | 午夜影院| 中文字幕成人av | 成人欧美一区二区 | 国产色综合天天综合网 | 午夜羞羞影院 | 亚洲一区二区三区免费观看 | 欧美精品亚洲 | 亚洲精品国产福利在线观看 | 久久久久久久综合日本亚洲 | 日本黄色大片免费看 | 99色综合 | 亚洲欧美视频一区 | 中文字幕日韩欧美一区二区三区 | 五月色综合 | 色综合久久婷婷天天 | 91精品国产91久久久久久 | 999精品国产人妻无码系列久久 | 视频一区二区不卡 | 欧美1024性视频 | 亚洲AV久久无码精品九九九小说 | 欧美性猛交xxxx乱大交蜜桃 | 精品一区二区免费视频视频 | 四虎永久免费地址ww 41.6 |