China on Thursday started issuing 33 billion yuan US$4.12 billion) worth of book-entry treasury bonds (T-bonds) with terms of maturity of three months.

 

The T-bonds, the second batch to be issued this year, carry an annual interest rate of 1.39 percent, the Ministry of Finance said in a statement.

 

Interest will be calculated from March 16, and all bonds should be issued by March 20.

 

The bonds are available to investors with funds, shares and investment accounts with China Securities Depository and Clearing Co. or China Treasury Bonds Depository and Clearing Co.

 

The bonds will also be floated for cash trading from March 22 at the national inter-bank bonds markets or the stock markets.

 

The underwriting institutions awarded the rights to distribute the T-bonds were selected by public tender.

 

These include the Industrial and Commercial Bank of China, Hangzhou City Commercial Bank and Industrial Bank Co.

 

(Xinhua News Agency March 17, 2006)