MARKET BRIEFING IN OCTOBER 2002

Open market operation

In October, the People's Bank of China (PBC) held four bond transactions through open market operations, all of which were repos in the form of fixed rate volume-bidding.

Bond issuing

In October, the China Development Bank offered two issues of bonds, totaling RMB 20 billion yuan, through the bond issuing system of the PBC.

Bond listing

In October, the PBC authorized two issues of bonds to be listed on the national interbank funding market. On Oct.23, the open market operation office of the PBC proclaimed that the 19 issues of central bank paper amounting to RMB193.75 billion yuan, converted on Sep. 24 from repo, would be listed on the interbank bond market beginning Oct.24, 2002. This indicates that central bank papers have come into use as a new open market operation instrument.

Market members

By the end of October, members in the national interbank funding market and bond market totaled 699. The national interbank forex market totaled 319 members.

(by Wang Fan)