Nine banks to issue China's first certificates of deposit on Monday

[SHANGHAI] Nine Chinese banks, including the "Big Four" state lenders, will issue the country's first batch of large-scale certificates of deposit (CDs) on June 15, China Foreign Exchange Trade System (CFETS) said on Thursday.

The announcement by CFETS, run by China's central bank, came a week after the People's Bank of China released guidelines for banks to issue CDs to individual and institutional investors, paving the way for full interest rate liberalization.

Most of the CDs in the first batch will have terms of one year or shorter. The subscription threshold for an individual is 300,000 yuan (S$65,155), while the minimum for an institution is 10 million yuan.

Banks that will issue CDs include the "Big Four" - Industrial and Commercial Bank of China Ltd , Agricultural Bank of China Ltd , Bank of China Ltd and China Construction Bank Corp .

They also include Bank of Communications Co Ltd , China Citic Bank Corp Ltd , China Merchants Bank Co Ltd and Industrial Bank Co Ltd.

REUTERS