China's 50-year ultra-long special treasury bonds made their debut on the Shanghai and Shenzhen stock exchanges on Wednesday to facilitate investor transactions and improve the liquidity of the country's bond market.
The bonds were issued on June 14 at the Beijing Stock Exchange with a total sum of 35 billion yuan (about 4.83 billion U.S. dollars) at an interest rate of 2.53 percent. The interest will be calculated starting from June 15, 2024, and will be paid every half year. The principal will be repaid along with the final interest payment on June 15, 2074.
According to industrial insiders, individual investors can invest in the 50-year ultra-long special treasury bonds through both banks and securities companies, after their debuts on these two bourses in Shanghai and Shenzhen.
"Starting from June 19, the ultra-long-term special treasury bonds can be purchased and sold through the regular stock trading channels at branches or apps of securities companies. Each transaction must be in multiples of 100,000 yuan (around 13,787 U.S. dollars). If investors, who bought ultra-long-term special treasury bonds at banks, want to trade in the secondary market, they need to transfer the bonds to the stock exchanges through the banks' cross-market custody transfer services," said Zhu Songjun, manager of the Ping An Securities Beijing Company.
A total of 22 batches of ultra-long special treasury bonds will be issued this year, with the last batch expected to be completed by mid-November, according to a plan of the Ministry of Finance.
The issuance of the 50-year ultra-long special treasury bonds can provide stable financial support for the implementation of major national strategies in the long term, and it is of great significance in improving bond supply, and promoting the balance of supply and demand in the bond market.
China's 50-year ultra-long special treasury bonds list on local exchanges
