40b inject state-owned banks

The subsidiary of CCIC, Central Huijin Investments (Huijin) initiated yesterday its bond issue at 40.0 billion yuan injecting top state-owned bankers. The total amount is to be raised at 1.875 billion yuan with series of bond sales amid inter bank market.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Huijin has actually held the controlling stake of almost all state-owned banks in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China, including China construction Bank, Agricultural Bank of China and Bank of China. The rest top bankers are also intended to collect millions of funds in US$ to improve the financial conditions of their own, from which massive lending has been  conducted no long ago under the official directive.

Huijin says it intends, with permission of the government, to reorganize the two state policy banks like Export-Import Bank of China and China Export and Credit Insurance Corp. it also plans to purchase large amount of shares from bank of China, China construction Bank and Industrial and commercial Bank of China.

Yesterday Huijin has sold 7-year bond note at 20.0 billion yuan with annual rate at 3.16 percent, together with 20.0 billion yuan of 20-year bond note at annual rate of 4.05 percent. Additional bond of 6 billion and 8 billion yuan in 7-year and 20-year will be on selling latterly as over-allotment option adopted.