Thursday, March 5, 2009

The Debts of the Lenders: Chinese Compete W/The US To Sell Bonds

Move aside Bernanke and Geithner! There is a new player in town. All treasuries need right now is more competition. First it was the EU last month and then it was Gordon Brown arriving before Congress this week in a barely disguised plea to buy British gilts.

But now America's largest lender is floating its own issues for the purpose of quantitative easing.

March 6 (Bloomberg) -- Chinese companies have applied to sell 100 billion yuan ($14.6 billion) in bonds to help spur economic growth, following the sale of 130 billion yuan of such debt since Sept. 30, the nation’s top planning agency said.

More than 50 Chinese companies have applied to sell the bonds via a financial system designed to help raise funds to cover spending included in the nation’s stimulus package, Zhang Ping, head of the National Development and Reform Commission, said at a briefing in Beijing today. About 45 enterprises sold debt since the fourth quarter, he said.


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