Feb 24 - Special Financial Bonds for Small Micro Enterprise Attract Less Interest Than Expected

Source: Caixin, ChinaScope Financial (Data)

+       Shanghai Pudong Development Bank Co., Ltd. will issue a maximum of CNY 30 billion special financial bonds on the interbank bond market on February 24. The bonds will have a five-year term and a fixed rate. Pudong Development Bank announced that all raised funds will be used to support its loans to small business.

+       The market’s reaction to such kind of bonds is rather moderate in comparison to the special financial bonds issued for small micro enterprises by large commercial banks. This type of financial bond is in essence an ordinary bank’s financial bond, but it has slightly lower yield and it is less liquid.

 Summary of loans and financial bonds for small- and micro-sized enterprises

Other News Headlines:

n High Interest Rate in the First Round of Treasury Deposit Bidding

n Special Financial Bonds for Small Micro Enterprise Attract Less Interest than Expected

n China’s Urban Social Safety Net Will be Expanded in 2012

n eLong: Net Operating Revenue Increased 27% YoY in Q4 2011

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Dec 09 - USD/CNY Hits Lower Trading Limit for the Seventh Consecutive Day

Source: China Business News, ChinaScope Financial (Data)

+   The USD/CNY central parity during the intraday trading was 6.3319 on Dec. 8, continuing the RMB’s depreciation against the USD.

+   So far, the USD/CNY rate has hit the lower limit of its trading range for seven consecutive days, which has not occurred since the reform of the Chinese currency trading system in 2005.

+   An official from the Ministry of Commerce commented on Dec. 7 that the continuous decline of the RMB show that the Chinese government is not controlling the RMB exchange rate, but that it is moved by market forces.

+   Related Data: Interbank Market USD/CNY Exchange Rate

Interbank exchange rates reflect the expectation for depreciation of RMB

For more data on currencies, please visit www.chinascopefinancial.com

Other News Headlines

n Sharp Decline in China’s Inflation Rate: CPI for Nov. 4.2% YoY

n USD/CNY Hits Lower Trading Limit for the Seventh Consecutive Day

n Poor Performance in Securities Industry, Securities Firms Cut Wages

n Corporate Bond at RMB 4.3 Trillion in 2010, Accounting for 10% of GDP

n Zhejiang: Small Loan Companies Have Lent out Nearly RMB 150 Billion in the Past Three Years

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