Source: CCTV.com

11-26-2008 09:52

As Chinese investors search for relatively safe havens for their money during this economic downturn, the third electronic savings bonds of the year was issued on Tuesday.

This round of the savings bond issuance will run from November 25th to December 4th. The 3-year e-savings bonds issue could be as large as 20 billion yuan. The bonds have a fixed annual interest rate of 5.17 percent.

To meet investor enthusiasm for this third round of e-savings bonds, many bank outlets in Beijing opened half an hour earlier than usual. But long lines formed several hours ahead of the openings.

Bank customer said "I came here at seven-thirty. There was already a long line. Bonds are much safer than savings. And they have higher interest rates."

Another bank customer said "The interest rate of today's bonds is higher than that of 5-year savings accounts. It's worth buying some."

The electronic savings bonds are only open to individual investors, and they are available on a first come, first served basis. Many invested around 100-thousand yuan, with some buying close to the upper limit of 3 million yuan for each person.

Shou Yi, Manager of Chang'an Subbranch of CCB said "By nine o'clock, our outlet had sold 2 million yuan worth of bonds. The electronic savings bonds are more convenient for customers."

Experts are reminding people that interest on the bonds will be calculated from November 25th and paid annually. Bond-holders will not be allowed to redeem the bonds within the first six months.

 

Editor:Xiong Qu