China will issue electronic savings bonds to individual investors for the first time, expanding investment channels for households that traditionally put their savings in banks.

The non-tradable bonds will only be available to individuals, and will be issued by the Ministry of Finance in the near future.

The savings bonds are aimed at absorbing household savings and meeting long-term savings investment demand. The savings bonds can be bought, managed and redeemed electronically.

Risk management

State-owned enterprises should set up a risk management commission to prevent losses and enhance their competitiveness, the State-owned Assets Supervision and Administration Commission said in guidelines released last Tuesday.

The guidelines shed light on the overall principles, basic processes and evaluation of risk management. It is aimed at avoiding a recurrence of the China Aviation Oil Singapore Co case, which forced the company to request bankruptcy protection last November, after losing US$550 million in oil derivatives trading in 2004.

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