The Shanghai Stock Exchange on Thursday launched the trading of when-issued government bonds, China Securities Journal reported Friday. When-issued trading is the sale of securities before their actual issuance. Such transactions are helpful in gauging the price of upcoming issues. Thursday’s daily transactions were 162 million yuan (US$26.38 million), with a closing yield of 4 percent, up 0.8 points against the benchmark, the report said. Meanwhile, the government has announced it will issue 30 billion yuan worth of seven-year treasury bonds on Oct. 16 with benchmark yield of 3.992 percent, the report said. The launch of government bond trading on the country’s stock exchanges is the latest effort to promote the liberalization of interest rates, a step toward market-driven financing costs.
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