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Shanghai Investors Favor State Bond
Following the opening up of the B-stock market to domestic investors which sparked an investment spree, State bond of 2001, which started issuing last Thursday, also evoked enthusiasm from Shanghai citizens.
Only an hour passed before the Shanghai branch of the Bank of China sold all the bond out in its 139 sales department across the city, and so it was with other commercial banks selling the bond.
It has been learned that the State bond issued this time involves 60 billion yuan (US$7.23 billion), including 48 billion for a three-year term and 12 billion for five-year term.
Now that State bond buyers can be exempt from taxes, its actual interest rate is 27 percent higher than savings for the same period.
While trading on stocks and foreign exchange have become the main investment channel for people in Shanghai, State bonds have won their favor for its stable returns.
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