BEIJING, June 28 (Xinhua) -- CSI 7-10 Year CDB Bond Liquidity Index, the first index tracking liquidity performances of bonds with maturity of 7-10 years issued by Chinese ex-policy lender China Development Bank (CDB), will be formally released on July 17.
The index launching was jointly announced by CDB and China Securities Index Co., Ltd. (CSI), a joint venture between China's Shanghai Stock Exchange (SSE) and Shenzhen Stock Exchange (SZSE) early this week before the Dragon Boat Festival.
According to their announcement, the CSI 7-10 Year CDB Bond Liquidity Index takes into thorough consideration of real transactions of relevant CDB bonds and reflects yield changes of key-term CDB bonds.
As sample bonds tracked by the index boast high liquidity and are easy to track, transaction costs and tracking deviation are largely minimized and together with their stable durations, the index is expected to be a sound investment benchmark for CDB bonds.
In future, investment instruments to track the CSI 7-10 Year CDB Bond Liquidity Index are expected to satisfy demand of investors at home and abroad for investing in bonds in China alongside debut of the rumored cross-market bond exchange traded funds (ETF).
CDB is the largest bank bond issuer in China and its bonds remain for a long time the most actively traded bond products. Currently, its 10-year bonds own the highest liquidity and their yield curve has become one of the important bond market benchmarks in China. By late June, CDB has issued in total 20 trillion yuan of bonds and its outstanding bonds reached 9.8 trillion yuan. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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