China to issue record treasury bonds in 2022, guide rates lower

  • 12/30/2021
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SHANGHAI, Dec 30 (Reuters) - China will guide overall interest rates lower for the record amount of treasury bonds it plans to issue in 2022, a senior official at the finance ministry said. China will also encourage more long-term foreign investors into its treasury bond market, Wang Xiaolong, director of the Treasury Department, Ministry of Finance, said during a meeting. Wang"s speech was reported on Wednesday in China Bond, a magazine published by the China Central Depository & Clearing Co., Ltd.(CCDC). The world"s second-largest economy faces multiple challenges heading into 2022, and Beijing has said its monetary and fiscal policies will take a prudent and proactive approach to stabilise growth. The Ministry of Finance will ensure market liquidity is reasonably ample, Wang told the conference. Wang said China will moderately increase the proportion of short-term treasury bonds issuance to guide the overall rate lower, and let the treasure bond yield curve to fully play a pricing benchmark role in money borrowing and transfer pricing. Wang also said China will encourage and guide more mid-to-long term foreign capital into the market and hold bonds for longer time.

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