China Development Bank (CDB) and China Everbright Bank (CEB) signed a master agreement on derivatives Monday.

 

The CDB, China's policy bank, and the CEB just completed the country's first RMB interest rate swap transaction of five billion yuan (about US$616.5 million) on Feb. 9.

 

Chinese banks have previously signed contracts for conducting derivatives business on foreign currencies. As China's financial market matures, Chinese banks are beginning to trade derivatives with each other on the yuan.

 

The CDB has signed a similar contract with the Industrial Bank Co., Ltd. It is holding talks with several other Chinese financial institutions, according to sources.

 

(Xinhua News Agency February 14, 2006)