CDB is a policy financial bond issued by China Development Bank, mainly for financial institutions such as Postal Savings Bank, state-owned commercial banks and regional commercial banks.

What are the characteristics of CDB?

First, the risk factor is low.

According to the regulations of the State Council and China Banking Regulatory Commission, the risk weight of commercial banks investing in CDB financial bonds is 0%, and securities and insurance institutions investing in CDB bonds shall be handled in the same way.

Standard & Poor's and other professional rating agencies keep CDB's rating consistent with China's sovereign rating.

Second, the variety is complete.

The maturity of bonds issued by CDB ranges from 3 months to 50 years, including fixed interest rate, floating interest rate, bonds with options, bonds linked to financial bonds, and green financial bonds. It is an important innovation leader in China bond market.

Third, trading is active.

In 20 16, the transaction volume of bonds issued by CDB exceeded 30 trillion yuan, and the monthly transaction volume accounted for more than 45% of the total market, with an average turnover rate of more than 4 times and a small bid-ask spread.

CDB has become the most liquid variety in the market due to the flexible issuance mode, reasonable issuance mechanism and the demand of supply contracts.

Fourth, high recognition.

With national credit and first-class market performance, CDB's market benchmark position has been widely recognized, and many issuers have issued credit bonds with CDB as the pricing benchmark.

What is national debt?

As the name implies, it is a bond issued by the state. It is a government bond issued by the central government to raise financial funds. It is a debt certificate issued by the central government to investors, promising to pay interest within a certain period of time and repay the principal at maturity. Because the issuer of national debt is the country, it has the highest credibility and is recognized as the safest investment tool.

What are the classifications of national debt?

According to the classification of bond forms, the national debt issued by China can be divided into two types: savings national debt and book-entry national debt:

Savings-type national debt:

There are paper bonds and electronic bonds. We call paper bonds savings bonds (voucher type) and can only be purchased at the bank counter, and the principal and interest will be repaid in one lump sum at maturity;

The electronic name is savings bonds (electronic). Electronic government bonds can be purchased at the bank counter. It is worth noting that savings bonds cannot be listed and circulated, so its liquidity will be poor, but the corresponding income level is higher than that of book entry.

Book-entry treasury bonds:

Book-entry treasury bonds can be listed and circulated, and the transaction price changes with the market in real time. Not only can you get fixed interest, but you can also get the difference income by buying low and selling high. Because the purchase of book-entry treasury bonds must open a securities account or a special account for treasury bonds in the exchange and entrust a securities institution to act as an agent, investors must have a securities account in the stock exchange and a capital account in a securities operating institution to purchase book-entry treasury bonds.