CCB Plays Active Role in Bond MarketThe China Construction Bank (CCB) has been very active in the inter-bank bond market and the treasury bond market, leading its domestic counterparts in underwriting financial bonds and treasury bonds.A spokesman for the CCB said that when the China Export and Import Bank issued its first financial bonds through public bidding this year, the CCB designed its bidding strategy on the basis of market return and its capital conditions, winning bids of 1.573 billion yuan, accounting for 19.66 percent of the total issue. He said that the active operation in bond markets has both created beneficial conditions for the central bank to regulate money supply through bond markets and helped the CCB lower its management risks. In 2000 the CCB purchased a total of 87 billion yuan in treasury bonds and policy financial bonds, of which 62.8 billion yuan were treasury bond accounts, holding the top position among all domestic banks. By the end of last year, the bank's outstanding bonds were 180 billion yuan, and the ratio of bonds to loans was one to 7.6, which largely improved its asset structure and improved its' capital safety and liquidity. Bond transactions enriched the bank's income, he said. Last year the CCB made an investment income of 4.9 billion yuan alone from the interbank bond market. Its' income from commission charges for underwriting voucher treasury bonds was 130 million yuan. |
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