The second phase of ultra-long-term special treasury bonds sold to individual investorsFishinggearnearmeYes.

Starting from 10:00 today, China Merchants Bank and Zhejiang Merchants Bank officially sold 20-year ultra-long-term special treasury bonds to individual investors.

According to the treasury bond business announcement issued by the Ministry of Finance on May 24, the bidding work of ultra-long-term special treasury bonds (II) (hereinafter referred to as current treasury bonds) has been completed in 2024. The current issue of treasury bonds is planned to issue 40 billion yuan, the actual face value of the issue is 40 billion yuan, the term is 20 years, and the coupon rate determined by bidding is 2.Fishinggearnearme.49%, the distribution will be carried out from the end of the bidding to May 27, and will be listed for trading on May 29.

The second phase of ultra-long-term special treasury bonds is coming.

Securities Times brokerage China reporter learned from China Merchants Bank and Zhejiang Merchants Bank that the distribution time of the above-mentioned 20-year ultra-long-term special treasury bonds to individuals is from 10:00 to 15:30 on Monday, May 27.

It is reported that on the morning of May 27, the 20-year ultra-long-term special treasury bonds of China Merchants Bank and Zhejiang Merchants Bank sold out within minutes.

fishinggearnearme| The second issue of ultra-long-term special treasury bonds sold out in minutes!

The current treasury bonds are interest-bearing bonds with fixed interest rates, and the interest is paid on a half-yearly basis. The interest payment date is May 25 (holiday extension, the same below), November 25, and May 25, 2044, to repay the principal and pay the last period of interest.

The issuance scale of ultra-long-term special treasury bonds this year is 1 trillion yuan. From the pace of issuance, ultra-long-term treasury bonds are concentrated from May to November this year, and are issued in multiple batches and multi-term periods.

According to the "relevant arrangements for the issuance of General treasury bonds and ultra-long-term special treasury bonds in 2024" issued by the Ministry of Finance on May 13, this year's ultra-long-term special treasury bonds are divided into three maturity periods of 20 years, 30 years and 50 years, with 7, 12 and 3 issues respectively. The initial dates of the issue are May 24, May 17 and June 14, respectively.

The first issue of this year's ultra-long-term special treasury bonds is 40 billion yuan of 30-year special treasury bonds issued on May 17, with a weighted winning yield of 2.57%.

On the day when the first issue of ultra-long-term special treasury bonds was sold to individual investors, investors were enthusiastic about it. On May 20, Zhejiang Merchants Bank successfully distributed the first tranche of ultra-long-term special treasury bonds over the counter, which officially went on sale at 10:00 that day, and the first batch of sales was sold out within 10 minutes of the opening. In order to meet the needs of the majority of investors, Zheshang Bank quickly added an additional distribution quota at 11:00 on the same day, which also sold out in a short time.

As this is the first time that the Ministry of Finance has issued super-long special treasury bonds, Zheshang Bank has made a prudent comprehensive assessment, customer demand ranking and investor guidance before issuing. Specifically, before the sale, the head office of Zhejiang Merchants Bank takes the lead, and the branches carry out customer touch arrangement, and customers have a strong investment demand. The main problems of customer consultation are purchase channels, quota restrictions, age limits, safety, income measurement, liquidity, handling fees, quotations and other related issues.

Zheshang Bank said that individuals investing in ultra-long-term treasury bonds are book-keeping treasury bonds, which are different from savings treasury bonds that individual investors are more familiar with, which need to match their own risk preference, and investors also need to do risk assessment before buying. Individual investors of bookkeeping treasury bonds who do not hold maturity but aim at trading profits should have certain investment experience and risk tolerance.

The "special" of special treasury bonds

Special treasury bonds refer to treasury bonds with specific uses issued periodically in a specific period of time. China issued three special treasury bonds in 1998, 2007 and 2020, respectively, to replenish the capital of the four major commercial banks, to set up CIC to manage foreign exchange, and to deal with the impact of sudden epidemics.

With regard to the investment of this year's special treasury bonds, this year's government work report has made it clear that in order to systematically solve the funding problem of some major projects in the process of building a powerful country and national rejuvenation, it is planned to issue ultra-long-term special treasury bonds for several consecutive years starting from this year. Special for the implementation of major national strategies and security capacity-building in key areas.

"supporting local and corporate investment by increasing the debt of the central government is the essence of this special treasury bond launch." According to the Dagong International report, the "special" of special treasury bonds is reflected in the nature of treasury bonds, which is included in the budget of government funds rather than in the general public budget constrained by the issuance deficit. By comparing the characteristics of the recently issued "special refinancing bonds", "special treasury bonds" and "super-long special treasury bonds", we can see that it is also conducive to optimizing the local debt burden. "special refinancing bonds" are issued directly by the local government, and the annual interest expenditure is a huge pressure. Both "special treasury bonds" and "super-long special treasury bonds" are leveraged by the central government and arranged to local governments through transfer payments, and most of the additional 1 trillion "special treasury bonds" issued in 2023 are carried forward to 2024, which is conducive to making room for local finance in the short term; "ultra-long special treasury bonds" help to hedge against the lack of local investment willingness and raise the expectation of medium-and long-term economic growth.

In terms of significance to individual investors, Yue Kai Securities Research News believes that ultra-long-term special treasury bonds can enrich financial investment varieties and increase investment channels for individual investors. The proportion of ultra-long-term treasury bonds in the balance of treasury bonds in China is relatively low. Issuing ultra-long-term treasury bonds, especially 30-and 50-year treasury bonds, will not only help to enrich the investment varieties of the financial market, but also meet the investment needs of investors for long-term and stable returns, and promote the healthy development of the financial market. For individual investors, they can also participate in the purchase of ultra-long-term treasury bonds, in addition to stable principal and interest income, there are gains and losses on secondary market investment.

Editor: Zhu Yumeng

Proofread: Zhao Yan

Date: 2024-05-27