China Railway Corporation successfully issued the 1st cross-market railway bond on June 6, with the total issuance size of RMB20 billion on the exchange and interbank bond markets, among which RMB10 billion is for 5-year products at the issuance rate of 4.46% and the other RMB10 billion for 20-year products at 4.78%. Banks, insurance companies, securities dealers and enterprise annuities are active in purchase in this cross-market issuance of railway bond. Warm response has been seen in the market, and new progress has been made in the interconnection among the bond markets. The railway bond will be listed for trading on the Shanghai Stock Exchange (SSE) on June 11, and adopt the way of bidding, quoting, enquiry and contractual trading. It will open to the public investors and qualified investors, and can be used for collateralized repo after listing, with the repo discount coefficient at 0.96.
The SSE released the "Notice on the Listing and Trading of China Railway Construction Bond" and relevant supporting rules on June 1. The cross-market issuance of the railway bond is a specific measure of the SSE to implement its strategic cooperation agreement with China Railway. Next, the SSE will continue to expand the investment subjects of the railway bond, improve the liquidity of the secondary market of the railway bond, optimize the exchange bond market structure, actively serve high-quality centrally-administered SOEs, take root in serving the real economy, and play the advantage of resources allocation.