Anti-epidemic special government bond issuance started smoothly (Ruijing)
According to a notice from the Ministry of Finance, on June 18, the bidding for the first and second phases of the anti-epidemic special treasury bonds in 2020, the issuance of the anti-epidemic special treasury bonds officially started. How to issue this special anti-epidemic government bond? How do individual investors buy? Where will the funds be spent? The relevant person in charge and experts of the Ministry of Finance answered.
How to send?
All public tenders
The Ministry of Finance's first-term government bonds are 5-year fixed-rate interest-bearing bonds with a total face value of 50 billion yuan in competitive bidding; the second-phase government bonds are 7-year fixed-rate interest-bearing bonds with a total face value of 50 billion yuan in competitive bidding. The two treasury bonds are scheduled to be tendered on June 18, the interest calculation will start on June 19, the tender will be closed until June 19 for distribution, and the transaction will be listed on June 23.
What is the method of issuing special anti-epidemic bonds?
The relevant person in charge of the Treasury Department of the Ministry of Finance introduced in an interview with the media that this year’s 1 trillion yuan special anti-epidemic treasury bonds will be market-oriented and all will be issued to members of the book-entry treasury underwriting syndicate for public bidding. Anti-epidemic special national debt maturity varieties, on the basis of matching the use period of fiscal funds, fully considered the needs of the construction of the national debt yield curve, focusing on the 10-year period, and appropriately matching the 5-year and 7-year periods to further enhance the national debt yield curve Effectiveness of key points.
"The national debt market has become an important place with a large capacity that can fully meet the needs of financial financing and investors' investment transactions." The person in charge said that the market-oriented public offering of special anti-epidemic government bonds will further enhance the capacity of the national bond market and better play the role of national bonds. The role of the market in the financial system promotes the long-term development of the national debt market.
According to the relevant requirements of the State Council Executive Meeting on "The Accelerated Issuance of Debt Issued", special anti-epidemic bonds will be issued from mid-June and will be issued before the end of July. Any Daixin, deputy director of the Financial Research Office of the Institute of Financial Strategy of the Chinese Academy of Social Sciences, told reporters in this newspaper that the emphasis on "accelerating the issuance of debts" is to issue early, use early, and see results early. The funds raised by the special anti-epidemic government bonds are essential to the economic operation, and capital investment is urgently needed to do a good job in the "six guarantees" and other tasks. Accelerating the issuance of government bonds will enable the funds to be put in place as soon as possible and play a role.
how to buy?
Individuals can participate in distribution transactions
Can I buy special anti-epidemic bonds? What is the interest rate level?
According to reports, similar to general book-entry treasury bonds, anti-epidemic special treasury bonds are not only listed and circulated in the inter-bank bond market, but also listed and circulated across the market in the exchange market and the commercial bank counter market. Individual investors can open accounts in the exchange market and commercial bank counter market to participate in the distribution and trading of special anti-epidemic government bonds. For details, you can check the transaction regulations of the relevant venues, or consult with ICBC, Agricultural Bank of China, China Construction Bank, China Merchants Bank, Bank of Beijing, Bank of Nanjing and other banks that have opened book-entry treasury counter business.
It is worth noting that the payment account for the special anti-epidemic treasury bonds announced in the issuance notice only accepts underwriting contributions from book-entry treasury underwriting syndicates, and does not accept individual transfers. Anti-epidemic special treasury bonds are the same as general book-entry treasury bonds and cannot be redeemed in advance. They can be traded in the secondary market. The transaction price fluctuates according to market conditions, and profits and losses are borne by investors.
In terms of interest rates, unlike the savings treasury bonds sold only to individual investors, the anti-epidemic special treasury bonds are book-entry treasury bonds, and the interest rate is determined through the bidding of members of the treasury underwriting syndicate and the market will follow. At present, the yields of 5-year, 7-year and 10-year book-entry treasury bonds are about 2.5%, 2.8% and 2.8%.
In He Daixin's view, the general return of national debt is stable, and there is almost no risk with national credit as a guarantee. It has always been favored by institutional and individual investors. This special anti-epidemic national debt is issued to individuals, which can be said to add a good option for residents to invest.
how to use?
Support public health and anti-epidemic expenditures
Xu Hongcai, deputy minister of finance, previously introduced that this part of the funds for the special anti-epidemic government bonds is mainly used for public health and other infrastructure construction and anti-epidemic related expenditures, including support for the development of small and micro enterprises, financial discounts, and rental subsidies. All localities can set aside a certain proportion of the allocated funds within the allocated amount to solve the urgently needed capital needs for special difficulties at the grassroots level, and allocate and use them independently according to actual needs. "The special national debt for anti-epidemic is not included in the fiscal deficit, it is included in the budget management of government funds, and is transferred to local governments through transfer payments of government funds."
In terms of specific delivery methods, Li Jinghui, director of the budget department of the Ministry of Finance, said that considering that the anti-epidemic special treasury bonds were issued by the central government and paid interest, with a certain amount of financial subsidies, in order to reflect regional equity, the Ministry of Finance mainly Cut into the provincial financial department according to the factor method. Provincial finance departments implement the scope of use specified by the Ministry of Finance and the principle of "Funds follow projects", and implement it independently to the city and county grassroots and specific projects. The provincial finance department reports to the Ministry of Finance for approval before filing down to the city and county.
It is understood that in order to regulate the management of special transfer payments and special treasury bond funds, the Ministry of Finance has formulated fund management methods to clarify the use of funds, distribution and allocation, repayment of principal and interest, and budget preparation of special treasury bonds.
Including the issuance of special anti-epidemic national bonds, measures such as increasing deficits and vigorously curbing central government spending are aimed at increasing financial support to local governments. Maintaining grassroots operations is a top priority for this year’s budget arrangement. "At present, we as a whole judge that the local people's basic livelihood, wages, and grassroots government operations this year are guaranteed from the source of funds." Li Jinghui said.
Li Jie