MARKET BRIEFING IN DECEMBER 2002

Open market operation

In December 2002, the People's Bank of China (PBC) held four open market bond operations, including repo, reverse repo and bond trading.

In 2002, the PBC held 48 open market bond operations in total, including 24 reverse repos, 24 repos and 21 bond trading sessions, in the form of volume-bidding and American interest-rate-bidding. The six varieties involved in repos were the 7-day, 14-day, 28-day, 91-day, 182-day and 364-day, and nearly 20 issues of bonds were traded. On September 24, the 91-day, 182-day and 364-day immature repo operations performed from June 25 to September 24, 2002 were converted into central bank papers with the same maturities.

Bond issuing

In the year of 2002, bonds issued on the bond market hit a record high of RMB950.63 billion yuan. The Ministry of Finance had 16 issues of book-entry treasury bonds and four issues of visible treasury certificates, totaling RMB606.13 billion yuan. The China Development Bank offered 20 issues of financial bonds which amounted to RMB250 billion yuan; and the seven issues of financial bonds by the China Import & Export Bank reached a total of RMB57.5 billion yuan. In addition, eight corporations including the China International Trust & Investment Corporation issued corporate bonds worth RMB37 billion yuan.

Bond listing

In 2002, the central bank authorized 39 issues of bonds to be listed on the national interbank bond market while five bonds were delisted. In addition, the central bank papers converted on September 24 from repos were listed on the interbank bond market beginning October 24.

Market members

By the end of 2002, members in the national interbank funding and bond market totaled 733, among which 602 had been connected to the network. The national interbank forex market had a total of 322 members.

www.chinamoney.com.cn

In December 2002, according to the Administrative Rules on the Information Disclosure by Securities Companies of the National Interbank Funding Center, www.chinamoney.com.cn publicized information submitted by 18 securities companies including Hualong Securities Co., Ltd. By the end of 2002, www.chinamoney.com.cn boasted more than 7000 registered users. (by Wang Fan)