Major Chinese Companies Issue Debt Bonds in Yuan
Three major Chinese corporations are now in the process of selling bonds that are yuan denominated. These firms are Kunming Iron and Steel Co., Shandong Mining Machinery Group and China Development Bank Corp.
Kunming Iron and Steel Co is an extra large industrial corporation that is considered as one of the largest iron and steel producers in China, with a production capacity of 2.5 million tons a year. By April 10, the company is planning to sell five year bonds in the amount of 1.1 billion yuan or US$177.2 million.
Another major industrial corporation in China is Shandong Mining Machinery Group Co. Its major focus is the development, production and sale of coal mining machinery as well as maintenance and repair services. It manufactures conveyors, hydraulic supports and other industrial machinery. Also on April 10, it is preparing to offer for sale one year bonds priced at 350 million yuan.
China Development Bank is a state owned financial institution that is also a policy bank of the government. It is now in the process of increasing availability of four batches of binds that can amount to as much as 20 billion yuan. The specific bonds are one year, three year, five year and seven year bonds.