BEIJING (XINHUA) – The People’s Bank of China, or the central bank, conducted a central bank bills swap (CBS) operation yesterday to improve the liquidity of perpetual bonds.
The CBS, valued at CNY5 billion (about USD719.2 million), is open to primary dealers for bidding at a fixed rate of 0.1 per cent, the central bank said in a statement. The swap will be due on May 28, 2023, according to the statement.
The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will boost market demand for perpetual bonds.
