MARKET BRIEFING IN MAY 2002

Open market operation

In May, the People's Bank of China (PBC) held three open market operations in the form of volume-bids, including reverse repo and bond trading.

Bond issuing

In May, the Ministry of Finance issued its 5th issue of book-entry treasury bonds in 2002, through the bond issuing system of the PBC. Amounting to 26 billion yuan, these 30-year bonds are coupon bonds with a fixed rate of 2.90 per cent, and their interests will be paid once every six months.

Market members

On May 27, the upgraded two-way quotation bond trading system of the National Interbank Funding Center was put into operation formally.

In order to raise the efficiency of financial institutions' forex fund operation and promote the development of domestic forex market, the China Foreign Exchange Trade System will launch broking service of foreign exchange deposit on June 1. It indicates the start-up of an integrated and regulated domestic market for the interbank foreign exchange deposit.