The approval of 1.55 trillion yuan in China"sspecial bonds will help restructure financialmarket and monetary policy
On June 29, after having been approvedby the Standing Committee of theNational People"s Congress (NPC).the Chinese Ministry of Financeannounced that it would issue 1.55trillion yuan in special bonds in order to buy＄200 billion in foreign currency to fundChina"s new overseas investment company.The interest rate of the book-entry treasurybonds is to be decided by the market.
The 1.55 trillion yuan in special bondsis equivalent to the aggregate amount oftreasury bonds issued in the past five yearsand is the largest bond release since thefounding of the People"s Republic of China.