News Column

China : First OTC Financial Bond Gains Traction

June 10, 2014

The 2014 Issue XII Financial Bond of China Development Bank , which was issued through banking channels for the first time, has been well received by investors since its trading in the OTC retail banking market began on May 13. The trading volume reached RMB20.45 million on the first day and the daily trading volume has stayed above RMB16 million. As the only market-maker of the bond in the OTC retail banking market, ICBC provided bilateral quotation and market-making service for investors during trading hours and ensured smooth running of transactions after the issue of the bond.

According to an executive with ICBC, investors can trade the bond through ICBC s Internet banking, mobile banking and domestic outlets during the trading hours from May 13 and the transactions are cleared on a real-time basis. Personal Internet banking customers can login Internet banking platform, enter Online T-bond Service column, select 2014 Issue XII Financial Bond of China Development Bank , and click buy or sell to trade the bond at market price.

The issue of China Development Bank s bond by ICBC as an OTC market-maker is the first time that the OTC trading market is expanded to cover financial bonds, which has not only diversified the product line of OTC retail bonds but also effectively met the public s needs for bond investment. Previously, China Development Bank had successfully issued the one-year OTC bond worth RMB 2 billion with a coupon rate of 4.5% through ICBC. Retail investors and non-financial institution investors subscribed RMB 1.545 billion and RMB 455 million, respectively.

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Source: TendersInfo (India)

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