Beijing will issue 1.3 billion yuan of local bonds
Individuals can subscribe for 100 yuan starting from August 23 to 25
The reporter learned from the Municipal Finance Bureau that the city will issue 1.3 billion yuan of local government bonds (referred to as "local bonds") through the commercial bank counter market on August 20. Individuals and small and medium-sized institutional investors will be available from August 23 to 25. During the period, the subscription is made through bank counter outlets or mobile banking and online banking, and the initial investment amount is 100 yuan.
Why use local debt funds
The local debt funds issued this time will be used for the shantytown reconstruction project in Qianweigou Group, Sunhe Township, Chaoyang District, and the shantytown reconstruction project in Shuangxin Village, Haidian District.
The Weigou project is located in Sunhe Township, Chaoyang District. On the premise of ensuring that the scale of residential land construction meets the resettlement needs of farmers, the project focuses on ensuring education, medical and other public service facilities and municipal transportation facilities to meet the daily needs of local residents.
The Shuangxin Village project in Haidian District is located in the west of Sijiqing Town. The project includes resettlement houses, residences, supporting facilities, etc., which is conducive to increasing regional environmental improvement and speeding up the process of urban-rural integration in the region.
Where to buy local government bonds
The local bond issuance date is August 20, and the distribution date is August 23-25. Individuals and small and medium institutional investors can subscribe.
The face value of the bond is 100 yuan, and the initial investment amount is only 100 yuan, and the number of bonds that investors subscribe to is an integer multiple of the face value of 100 yuan.
The bond term is three years, and the coupon rate will be determined by public bidding on August 20.
The bond issuance undertaking banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, China Merchants Bank, Beijing Rural Commercial Bank, Bank of Beijing, Bank of Communications, Shanghai Pudong Development Bank, Ping An Bank, Zheshang Bank, Bank of Hangzhou, etc. 12 homes.
Investors can buy through these banks at 2,866 business outlets covering the whole city.
In addition, 10 institutions including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, China Merchants Bank, Bank of Communications, Shanghai Pudong Development Bank, Ping An Bank, Zheshang Bank, Bank of Hangzhou, etc. have opened online banking and mobile banking counter bonds. In service business, investors can buy and sell at any time during the trading hours without leaving their homes.
What are the advantages of local debt
According to the relevant person in charge of the Municipal Finance Bureau, there are many advantages to buying local government bonds in Beijing.
First, the security is high. The Beijing municipal government bonds are issued by the Beijing Municipal Government and bear the responsibility of repaying the principal and interest. The default risk is extremely low, and the investment income is safe and stable. Second, the liquidity is good. Investors can hold to maturity and obtain Fixed income and principal at maturity; if investors need to cash out, they can sell at the quotation of the opening bank during the trading period, and the funds can be credited to the account in real time.
The starting point for investment in local government bonds is low, and the minimum subscription face value of OTC bonds is 100 yuan.
The purchase of local government bonds can also enjoy tax exemption policies.
According to the policies and regulations of the Ministry of Finance and the State Administration of Taxation, the interest income of local government bonds obtained by enterprises and individuals shall be exempted from income tax and value-added tax.
Our reporter Sun Jie