Source: CCTV.com

06-27-2007 14:46

The first issuance of China's yuan-denominated bonds in Hong Kong by the China Development Bank is available for retail subscription from today (Wednesday). The move is hailed by local authorities as a milestone for financial cooperation between Hong Kong and the Mainland.

China Development Bank's two-year yuan bonds were capped at a total size of 5 billion yuan. The coupon is set at 3 percent - much higher than the typical 0.8 percent rate offered by local banks on yuan deposits.

The offer will be available for both institutional and individual investors, with a minimum tranche of 1 billion yuan already set aside for retail subscriptions. Hong Kong residents could buy the bonds through 14 local banks, including Hang Seng, Standard Chartered, and Bank of Communications, with a minimum investment of 20 thousand yuan. The retail book will be closed on July 6th.