BIZCHINA / News |
Strong inauguration for China Yangtze Power bondsBy Wang Lan (China Daily)
Updated: 2007-10-12 15:03 The China Yangtze Power bonds exceeded analyst expectations today in their first day of trading. The mainland's first corporate bond debuted on the Shanghai stock exchange this morning at a premium over its issued price.
Analysts say the price premium today reflected institutional investors' demand for bonds with higher yields than government issues. Active traders include China Life and the People's Insurance Company of China (PICC). "Today's trading indicates insurance companies are interested in corporate bonds," said Nie Wen, an analyst at Industrial Securities. "The first corporate bonds performed well on its inaugural day due to the strong credit rating of the issuing company," said Li Fei, an analyst at a fund management company. Separately, Yunnan Copper Co today announced plans to issue corporate bonds amounting to a possible 2.9 billion yuan with maturity of 5 to 10 years. Before Yunnan Copper, property developers like Vanke and Gemdale Co also announced their plans to issue corporate bonds. |
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