Thursday, August 21, 2014

ecns [expanded by feedex.net]: Banks in China rush to issue negotiable certificates of deposit

ecns [expanded by feedex.net]

ecns

Banks in China rush to issue negotiable certificates of deposit
http://www.ecns.cn/business/2014/08-21/130903.shtml
Aug 21st 2014, 08:06





2014-08-21 17:06 Shanghai Daily


Commercial banks in China rushed to issue negotiable certificates of deposit as they are encouraged by financial regulators to accelerate liberalization of deposit rates in the country.


By August 20, the banks in China had issued 264.9 billion yuan (US$43 billion) worth of NCDs this year, according to Wind Information, a Shanghai-based financial data provider. So far, 48 banks announced that they planned to issue 1.33 trillion yuan NCDs this year.


NCDs can be bought by and resold to the members of the interbank market. It is a low-risk and low-interest investment instrument that cannot be cashed out before maturity.


Hong Kong-based Bank of East Asia said today it issued 500 million yuan in NCDs at an interest rate of 4.4 percent and with a maturity of one month. The lender has a quota of 3 billion yuan this year. Further issues will be arranged subject to market conditions, it said in a statement today.


HSBC received a similar quota from the regulator and made its first issuance last month with a total amount of 500 million yuan at 4.6 percent.










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