Chinanews.com, August 31. According to the central bank’s website, in order to improve the market liquidity of bank perpetual bonds, support banks to issue perpetual bonds to supplement capital, and enhance the ability of financial services to serve the real economy, the People’s Bank of China announced on August 31, 2021. The Central Bank Bill Swap (CBS) operation was carried out in Japan, with an operation volume of 5 billion yuan, a term of 3 months, and a fee rate of 0.10%.

  This operation is open to public bidding for primary traders in the open market business. The winning bidders include various financial institutions such as large state-owned commercial banks, joint-stock banks, city commercial banks, rural commercial banks, and securities companies.

The swap-in bonds include both perpetual bonds issued by large state-owned commercial banks and joint-stock banks, as well as perpetual bonds issued by city commercial banks, reflecting the support for small and medium banks to issue perpetual bonds to supplement capital.

  The People's Bank of China will comprehensively consider market conditions and reasonable needs, and adopt a market-based approach to steadily and prudently carry out CBS operations.

Keywords: