State to issue US$4b in bonds
30 April 2007
China's Ministry of Finance announced Sunday that it would sell US$4 billion in three- and five-year bonds in its scheduled sale from May 10-31, Reuters reported. The coupon for the US$2.8 billion in three-year bonds is set at 3.66% while the coupon for the US$1.2 billion in five-year bonds is 4.08%. The current interest rate on a three-year fixed-term bank deposit is 3.96%. The rate is 4.41% for five-year bank deposit. However, returns on bank deposits are subject to a 20% income tax while yields on government bonds are tax-free.