Vice Minister Says New Treasury Bonds Lucrative

Vice Minister of Finance Jin Liqun said Wednesday that buying the government's new treasury bonds is a good investment.

The interest rates for the new bonds have risen from last year, and are about seven percent higher than those of bank deposits. A favorable policy has also made returns from the bonds exempt from interest duty, which makes it even more profitable, Jin said. China will sell 50 billion yuan in treasury bonds beginning today and ending on April 20 at major banks and postal savings offices nationwide.

Of the 50 billion yuan in bonds, ten billion mature in two years at an annual interest rate of 2.55 percent, 35 billion mature in three years at an interest rate of 2.89 percent, and the other five billion yuan mature in five years at an interest rate of 3.14 percent.

These T-bonds are certificate bonds which can be used as collateral for bank loans, thus increasing the liquidity of the funds and helping promote consumer credit, according to Jin.

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