The first six pilot provinces and cities that participated in the OTC listing of local bonds were Ningbo, Zhejiang, Sichuan, Shaanxi, Shandong and Beijing. From March 25, 20 19, local bonds in these areas can be sold through bank counters one after another. At present, there are eight first-time contracted banks participating in the OTC issuance of local bonds, including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications.
With the official start of local debt counter sales, it means that the primary and secondary markets of local government bonds are completely open to individuals and small and medium investors. Local government bonds have become a variety that can carry out counter business in the inter-bank bond market after national debt, policy bank bonds and China Development Bank bonds.
Ningbo City and Zhejiang Province are the first pilot areas to issue local bonds. On March 22nd, the tender for Ningbo land reserve special bonds was completed. The term of this bond is three years, the issue interest rate is 3.04%, and the bid multiple is 37.46 times. 540 million yuan was issued to the national inter-bank bond market (excluding the counter market of commercial banks) and the bond market of stock exchanges, and 300 million yuan was issued to the counter market of commercial banks.
On the same day, the tender for the 2065438+2009 Zhejiang shed reform special bond was also completed, with an issue interest rate of 3.32% and a bid multiple of 28.8 times. The total amount of bonds in this issue is 2.2 billion yuan, of which 1 1 billion yuan is sold through bank channels, and the variety is five-year fixed-rate additional bonds. Zhejiang bonds and Ningbo bonds began to be sold at bank counters from March 25th to March 27th.
Sichuan is the third region to start OTC trading after Ningbo and Zhejiang. The amount of this five-year special land reserve bond in Sichuan Province is 5.929 billion yuan, of which 654.380+0.5 billion yuan will be sold to individuals and small and medium-sized investors in the province through the counters of commercial banks, which is the largest area at present. Soon, the government bonds of Shaanxi, Shandong and Beijing will also be listed one after another.
Can individuals buy local debt? Go to the test counter next week!
First of all, the risk is low. Because the credit of local governments is guaranteed, the risk of local debt investment is relatively low. Its income usually comes from the general public budget income and the corresponding government funds and project-specific income.
Second, the threshold is low. The starting point of local debt appointment is low, 100 yuan, far below the investment threshold of asset management products 100 yuan, which is suitable for small and medium-sized investors to participate.
In addition, the income is stable. The interest rate of local debt issuance is determined according to the interest rate of national debt, which is usually higher than 25-40 BP. In addition, the interest income of local bonds is exempt from personal income tax, enterprise value-added tax and income tax. Therefore, the real yield of local bonds is higher, usually higher than that of time deposits in the same period, and they can be bought and sold at any time.
In addition, local bonds are flexible and highly liquid.
In recent years, with the local government financing to open the front door and block the back door, the local debt market has expanded rapidly and become the first variety of the bond market. By the end of 20 18, the balance of local debt had reached 18.07 trillion yuan.
In recent years, the issuance time of local bonds in 20 19 has been advanced to March for the first time, and the trend of continuous expansion is obvious. The industry believes that more investors' participation will help ease the pressure on the supply of funds for local debt issuance and give full play to the role of local government bonds in stabilizing investment, expanding domestic demand and making up for shortcomings. At the same time, with the further enrichment and expansion of local debt investors, it will promote the trading liquidity of local debt and the construction of multi-level bond market.
Oriental Jincheng R&D Department believes that for individual investors, the opening of local debt counter business provides investors with more investment options and increases the diversity and security of asset allocation. As the bank asset management products have just exploded, local government bonds, as products with high security and higher income than national debt, will be welcomed by individual investors in the future.
For corporate customers, there are usually a lot of idle funds that need to be invested in asset management products and other configurations. Once broken, local debt is an asset with high safety factor, stable income and good liquidity, and can also meet the needs of enterprises to transfer funds at any time.
However, it should be noted that the risk of local debt is low, but the possibility of future default still exists.