CHINA China conducts second central bank bills swap in 2020


China conducts second central bank bills swap in 2020


11:48, February 28, 2020

BEIJING, Feb. 28 (Xinhua) -- The People's Bank of China, the central bank, conducted the second central bank bills swap (CBS) operation in 2020 on Friday to improve the liquidity of perpetual bonds issued by commercial banks.


File photo: VCG

The CBS, valued at 5 billion yuan (about 714 million U.S. dollars), are open to primary dealers for bidding at a fixed rate at 0.1 percent, the central bank said in a statement.

The swap will be due on May 28, 2020, the statement showed.

The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will effectively boost market demand for perpetual bonds but have a neutral impact on liquidity in the banking system.

Perpetual bonds are fixed-income securities with no maturity date and are not redeemable but pay a steady stream of interests forever.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue