Chinese policy bank - the Agricultural Development Bank of China (ADBC) issued its 1-year, 3-year, 5-year and 7-year fixed-rate bonds at all lower then estimated yields Thursday.
ADBC's four bond products were priced to yield 2.5841 percent, 3.3488 percent, 3.5503 percent and 3.8939 percent and were 2.01 times, 3.25 times, 3.12 times and 2.63 times subscribed respectively. Statistics with ChinaBond.com.cn show that yields of comparable products stay at a much higher level of 2.7047 percent, 3.4832 percent, 3.7293 percent and 4.0109 percent respectively at present.
As some researchers of securities companies say, the feverish auction is supported by the currently fluid liquidity flows, which may boost market confidence together with other positive elements and give birth to a bullish primary bond market in near term.
According to ADBC, these bond issues are additional ones under its fourth, ninth, tenth and 11th batch of bonds floated this year. As a policy lender in China, its bonds can enjoy zero risk weighting until maturity.
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