Five Chinese banks to offer 15 bln yuan deposit certificates
SHANGHAI Dec 12 (Reuters) - Five Chinese banks will sell a total of 15 billion yuan ($2.47 billion) of negotiable certificates of deposits (NCDs) on Friday, the banks announced on Thursday.
The banks, which include the China Bank of Communications , Shanghai Pudong Development Bank, Industrial Bank, China Merchants Bank and China CITIC Bank, will offer tenors of one month and three months, according to an announcement on Wednesday on the central bank's www.chinamoney.com.cn website.
The three-month tenor issued by the Bank of Communications will be priced at 98.7340 yuan, the three-month tenor issued by the other banks will be priced at 98.7220 yuan. The one-month tenor, to be issued by Industrial Bank, will be priced at 99.5637 yuan.
A type of investment that gives buyers fixed interest payouts, NCDs are a step towards relaxing China's control over rates as they let buyers and sellers negotiate prices between themselves.
The next expected step is for Beijing to implement a deposit insurance scheme, with the ultimate goal of letting deposit rates float freely.
Interest rates in China are controlled by the government, which instructs banks how much to pay for deposits and how much to lend, in part to protect their profit margins. ($1 = 6.0717 Chinese yuan) (Reporting by Chen Yixin and Pete Sweeney; Editing by Simon Cameron-Moore)
- Exclusive: Radar data suggests missing Malaysia plane deliberately flown way off course - sources
- Investigators focus on foul play behind missing plane-sources |
- Russia ships troops into Ukraine, repeats invasion threat |
- Search for Malaysian plane may extend to Indian Ocean - U.S |
- Russia blocks internet sites of Putin critics