China to float 40bn yuan in electronic savings bonds

The Ministry of Finance (MOF) announced Monday that it will issue two batches of electronic savings bonds worth up to 40 billion yuan (6.48 billion U.S. dollars). The two batches will be the seventh and eighth issuances of such bonds this year, according to a ministry statement. The seventh batch is worth 24 billion yuan and carries a term of three years with a fixed annual interest rate of 5 percent. The eighth issuance of five-year bonds is worth 16 billion yuan at a fixed annual interest rate of 5.41 percent, the MOF said. The bonds will be issued from Aug. 10 to 19. Interest will be calculated from Aug. 10 and paid annually, the statement said. The bonds will be available to individual investors at counters of the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications and China Guangfa Bank, it said. Electronic savings bonds are considered more convenient than other types, as interest can be paid directly into the investor's account.