How to buy treasury bonds
Certificate treasury bonds are mainly issued to individual investors. Its issuance and redemption are handled through the savings outlets of major banks, the outlets of the postal savings department, and the national debt service department of the financial department.
The procedures are similar to those for bank time deposits.
In the past, book-entry treasury bonds were issued in a book-keeping manner through the exchange trading system. Investors purchasing book-entry treasury bonds must open a securities account or a special treasury bond account on an exchange and entrust a securities institution to act as an agent. Therefore, investors must have a securities account at a stock exchange and open a capital account at a securities operating institution to purchase book-entry treasury bonds. On April 3, the People's Bank of China and the Ministry of Finance jointly promulgated the "Measures for the Administration of Book-entry Treasury Bond Transactions Over the Counter of Commercial Banks". It is expected that in June this year, the transaction of book-entry Treasury bonds over the counter of commercial banks will also be launched.
Book-entry treasury bond over-the-counter trading refers to the behavior of commercial banks buying and selling treasury bonds with investors through their business outlets, and handling custody and settlement. After investors open a treasury bond account at a commercial bank, they can handle the procedures for buying and selling treasury bonds in cash. In addition to financial institutions, individuals and corporate or institutional legal persons holding valid identity documents can open treasury bond custody accounts at commercial bank counters and trade treasury bonds.
What are Treasury bonds
Treasury bonds are bonds issued by the government. Compared with other types of bonds, treasury bonds are issued by the state and have extremely high creditworthiness, and are known as "gilt-edged bonds".
In order to effectively develop our country’s national economy, enhance our country’s comprehensive national strength, and improve people’s living standards, in addition to regularly issuing ordinary treasury bonds of appropriate scale, our government also issues certain amounts of bonds from time to time. Amount of special treasury bonds. Ordinary treasury bonds can be mainly divided into three types: certificate treasury bonds, accounting treasury bonds and bearer (physical) treasury bonds. Special treasury bonds mainly include directional bonds, special treasury bonds and special treasury bonds.
Certificate-type treasury bonds: They are a type of national savings bond that can be registered and reported as lost. The creditor's rights are recorded with a "certificate-type treasury bond collection certificate". It can be redeemed in advance and cannot be listed for circulation. Interest will be accrued from the date of purchase. .
Book-entry treasury bonds: record claims in the form of computer accounting, are issued and traded in a paperless manner, and can be registered and reported as lost.
Bearer (physical) treasury bonds: They are a kind of physical bonds that record claims in the form of physical bonds. They are bearerless, not reported as lost, and can be listed and circulated.
Directed bonds: In order to raise funds for national construction and strengthen the investment management of social insurance funds, with the approval of the State Council, the Ministry of Finance adopts a policy to mainly invest in pension insurance funds, unemployment insurance funds (referred to as "two funds") and Bonds raised by other social insurance funds are called "special directional bonds", or "directional bonds" for short.
Special treasury bonds: After review and approval at the 30th meeting of the Standing Committee of the Eighth National People's Congress, the Ministry of Finance issued 270 billion yuan of long-term special treasury bonds to the four major state-owned commercial banks in August 1998. The funds raised All the funds will be used to supplement the capital of wholly state-owned commercial banks.
Special treasury bonds: After deliberation and approval at the fourth meeting of the Standing Committee of the Ninth National People's Congress, the Ministry of Finance issued a special treasury bond to four state-owned banks including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank in September 1998. Commercial banks issued 100 billion 10-year interest-bearing government bonds with an annual interest rate of 5.5%, specifically for investment in infrastructure urgently needed for national economic and social development.