The Agricultural Development Bank of China (ADBC) issued three batches of financial bonds on Wednesday amid receding demand from investors.
The three batches of bonds bear a respective maturity of 1 year, 5 years and 7 years, with yields standing at 2.6877 percent, 3.6659 percent and 3.9609 percent respectively.
Insiders disclosed that the subscription ratios of the three batches of bonds reached 2.61, 3.12 and 2.81 times the volumes offered. Statistics from China Government Securities Depository Trust & Clearing Co. showed that yields on the 1-year, 5-year and 7-year fixed interest rate policy bank bonds traded on the domestic interbank market stood at 2.7198 percent, 3.6557 percent and 3.9482 percent respectively.
Analysts noted that due to the see-saw effect, the slight recovery of domestic stock market gave rise to the receding demand for new financial bonds.
However, Guotai Junan Securities still held an optimistic view towards interest rate-lined bonds as they boasted value as safe-haven assets.
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