Bond distribution occurs when the Ministry of Finance, China Development Bank or the Export-Import Bank of China issues bonds in the inter-bank market. Enterprise and institutional customers submit subscription applications to the bank and sign a distribution agreement.

After customers buy bonds in the primary market, hold them for a period of time and then sell them in the secondary market, or hold them until maturity to obtain interest income.

During the issuance process, the underwriter’s total distribution amount is limited to the total underwriting amount. If oversold occurs, CCDC will not handle the transfer and report to the People’s Bank of China and the issuer in writing.

Extended information: Scope of application: Commercial banks with legal person status in China and their authorized branches, non-bank financial institutions and non-financial institutions with legal person status in China, and branches of foreign-funded banks that are approved to operate RMB business.

The main types of institutions include state-owned commercial banks, joint-stock commercial banks, city commercial banks, rural credit unions, foreign banks, securities companies, finance companies, fund companies, etc.