Cover reporter Liu Xuqiang
The reporter learned from the Sichuan Provincial Department of Finance that on June 28, Sichuan Province officially launched the 2022 over-the-counter issuance of local government bonds by commercial banks. The bond issuance scale is 1.2 billion yuan, with a term of 3 years and a coupon rate of 2.54%. From June 29th to July 1st, individuals and small and medium-sized institutional investors can use 9 commercial banks, namely Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of China, China Merchants Bank, China Zheshang Bank, Shanghai Pudong Development Bank, Ping An Bank, and Bank of Chengdu. Subscribe for the current local government bonds at any of its business outlets in Sichuan Province or through electronic channels such as mobile banking and online banking.
The reporter learned that the over-the-counter market is an extension of the inter-bank bond market to the retail sector, mainly for individuals and small and medium institutional investors. Over-the-counter issuance of local government bonds is an important part of local government bond issuance channels, which is conducive to broadening the channels for residents’ property income. In the private sector, bonds sold by local government bonds in the over-the-counter market are commonly known as “over-the-counter bonds”.
In terms of income that investors are most concerned about, local “over-the-counter bonds” are guaranteed by the credit of the provincial government, with low investment risk; the coupon rate is higher than the interest rate of book-entry treasury bonds of the same term, and the interest income is exempt from personal income tax, corporate income tax and value-added tax , the income is stable, and it is suitable for investors who have certain requirements for the safety of principal and the rate of return.
In addition, in terms of subscription, the starting point for over-the-counter bond subscription is low, starting from 100 yuan, and the investment threshold is low; the transaction is flexible, and investors can buy or sell during any trading session, and the funds will be credited in real time.
It is reported that in 2019, in accordance with the unified deployment of the Ministry of Finance, Sichuan Province was the first batch of pilots to issue local government bonds over the counter of commercial banks. The issuance scale of bonds ranks among the top in the country. The bonds issued this time are new general bonds, and the raised funds will be used for the construction of key projects in the fields of science, education, culture and health in Sichuan Province.Return to Sohu, see more
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