Savings Bonds (electronic) are nonnegotiable RMB bonds issued by the Ministry of Finance within the territory of the People's Republic of China and sold to personal investors through pilot commercial banks. They are characterized in that the creditor's rights are recorded electronically. Savings Bonds (electronic) are only sold to personal investors. The name of the investor(s) is required to make a bond purchase. Savings Bonds (electronic) are sold at increments of RMB 100 Yuan, and the minimum purchase amount is RMB 100 Yuan.
High credit rating
Saving Bonds (electronic) are state bonds issued by the Ministry of Finance on behalf of the Central People's Government of the People's Republic of China and guaranteed by state credit. The Ministry of Finance will offer payment of both the premium and interest upon maturity. Therefore, Saving Bonds (electronic) have a maximum credit rating, which is unmatched by investment instruments guaranteed by commercial credit.
Saving Bonds (electronic) have a fixed interest rate that is higher than the after-tax yields of bank deposits with the same term. Interest earnings are not subject to income tax. During the entire term prior to maturity, Saving Bonds (electronic) have a stable par value and gain interest as time passes, without any risk of price fluctuation.
Although Saving Bonds (electronic) are nontransferable in the market, they can be cashed in advance as per regulations. In purchasing Saving Bonds (electronic), investors also obtain an excellent financing instrument. If an investor is looking to borrow money, Saving Bonds (electronic) may be pledged at the bank in exchange for a loan.
The formalities for the purchase and cashing of Saving Bonds (electronic) are simple. The recording of creditor's rights electronically is an easy and practical means that provides easy safekeeping. On the interest date/maturity date, the bank will automatically transfer the interest or the capital and interest receivable into the IB Financing Card of the investor for access at any time.
Open a bond escrow account
You can open a bond escrow account at an outlet of the bank by presenting valid proof of identification and your IB Financing Card.
You may underwrite Saving Bonds (electronic) at outlets of the bank by presenting valid proof of identification and the IB Financing Card that is tied to your bond escrow account. You can only underwrite bonds during the offering period of Saving Bonds (electronic).
Advance cashing of bonds
You may cash Saving Bonds (electronic) in advance at outlets of the bank by presenting valid proof of identification and the IB Financing Card that is tied to your bond escrow account. For advance cashing, the bank will levy a processing fee and deduct a certain amount of the proceeds in accordance with regulations.
Automatic interest payment and cashing
On the stipulated interest date or the maturity date, the interest or capital and interest receivable will be automatically transferred to your IB Financing Card, without any formalities.
By presenting valid proof of identification and the IB Financing Card that is tied to your bond escrow account at a bank outlet, you may process other services like non-trade transfer, personal deposit certification and hypothecated loan application.
You may check your bonds balance over the counter in bank outlets or via the bank's internet banking, telephone banking and mobile banking services. You may also check your bonds balance within inquiry hours via the telephone creditor's rights checking and inquiry system of the China Government Securities Depository Trust & Clearing Co. Ltd. (Tel: 010-66005000).This service is available from the day after you make a purchase.