Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    Perpetual bond policy will be fine-tuned to aid banking sector

    By Hu Yongqi | China Daily | Updated: 2019-02-20 10:39
    Share
    Share - WeChat
    Chinese 100 yuan banknotes are seen in a counting machine at a bank in Beijing. [Photo/Agencies]

    China's central bank will further improve its policy on perpetual bonds, with the first issued by a commercial bank last month to supplement capital and the banking sector's capability to support the real economy, bank Vice-Governor Pan Gongsheng said on Tuesday.

    Pan, who aside from his role with the People's Bank of China is the head of the State Administration of Foreign Exchange, made the statement at a policy briefing hosted by the State Council Information Office on Tuesday.

    The briefing came after a State Council executive meeting on Feb 11, presided over by Premier Li Keqiang, which decided to raise the efficiency in approving perpetual bonds and lower the threshold for preferred stocks and convertible bonds.

    A perpetual bond is a fixed income security with no maturity date.

    Strengthening banks' capital is a fundamental condition for the financial sector to support the real economy, Pan said. The introduction of perpetual bonds is beneficial in expanding channels for banks to add to their capital, improving the capital structure of China's banking industry and enriching investment products on the bond market, he said.

    The issuance of 40 billion yuan ($5.9 billion) in perpetual bonds by the Bank of China in January, the first by a commercial bank, had a positive reception in the market, Pan said.

    Pan said many international commercial banks choose perpetual bonds among major instruments for capital replenishment. From 2016 to 2018, perpetual bonds issued in the global market hit around $100 billion, he said.

    Perpetual bonds were started in China in 2013 with well-rated State-owned enterprises as the major issuers, according to Haitong Securities Co. According to the company, 1.75 trillion yuan of such bonds had been issued as of Dec 20.

    The central bank launched a swap last month that allowed primary dealers in an open-market operation to exchange perpetual bonds for central bank bills, which Pan said could increase the liquidity of perpetual bonds but not quantitative easing.

    To ensure an increase in loans to support the real economy, commercial banks need to replenish capital, said Cong Lin, director of the department of regulation of the China Banking and Insurance Regulatory Commission, who spoke at the briefing.

    In the next step, the commission will consider applications of commercial banks to issue bonds without fixed terms, taking into consideration their risk controls and operations, Cong said.

    Perpetual bonds are an example of China's deepening financial reform, and as a result, authorities will endeavor to create favorable policy conditions for bond products, Ji Zhihong, director of the central bank's financial market department, said at the briefing.

    More overseas investors are expected to diversify the pool of institutional investors, and strengthened information disclosures and stronger protections will also bolster the sector, Ji said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    色综合中文综合网| 久久中文字幕无码专区| 中文字幕日本精品一区二区三区 | 最近高清中文字幕免费| 99久久无码一区人妻a黑| 中文无码一区二区不卡αv| AV色欲无码人妻中文字幕| 精品亚洲A∨无码一区二区三区 | а天堂8中文最新版在线官网| 久久久久久久人妻无码中文字幕爆 | 手机在线观看?v无码片| 色综合久久无码中文字幕| 国产成人无码区免费网站| 在线欧美中文字幕农村电影| 精选观看中文字幕高清无码| 久久亚洲AV成人无码电影| 日日日日做夜夜夜夜无码| 最近免费2019中文字幕大全| 中文字幕人妻色偷偷久久| 性无码专区| 精品久久久无码中文字幕 | 国产精品无码免费专区午夜| 亚洲gv猛男gv无码男同短文| 自慰无码一区二区三区| 蜜桃臀AV高潮无码| 免费看无码特级毛片| 久久亚洲日韩看片无码| 久久亚洲精品无码aⅴ大香| 亚洲中文字幕丝袜制服一区| 午夜无码中文字幕在线播放| 熟妇女人妻丰满少妇中文字幕| 最近高清中文在线国语字幕5| 精品久久久久久无码中文字幕| 欧美精品中文字幕亚洲专区| 日本精品久久久久中文字幕8| 精品久久久久久无码中文字幕一区 | 日韩中文字幕在线视频| 久久精品中文字幕第23页| 亚洲av午夜国产精品无码中文字| 精品久久久无码中文字幕| 精品人妻无码区二区三区|