Chinese banks rush to issue 'virus NCDs' to fund anti-virus campaign

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXNPEB6U08A_M.jpg
© Reuters. Chinese banks rush to issue 'virus NCDs' to fund anti-virus campaign© Reuters. Chinese banks rush to issue ‘virus NCDs’ to fund anti-virus campaign

SHANGHAI (Reuters) – Chinese banks are rushing to issue low-cost deposits via the interbank market to help fund companies that are fighting the coronavirus outbreak.

A total of 26 banks are issuing negotiable certificate of deposits (NCDs) on Thursday to raise roughly 17 billion yuan ($2.43 billion) in total that will to be lent to companies involved in epidemic prevention and control, according to the National Interbank Funding Center.

Such “virus NCDs” carry lower interest rates than normal NCDs, which could help lower funding costs for such companies.

China has already encouraged the issuance of anti-virus bonds, and virus loans, to help channel more money into sectors that have been hardest hit by the outbreak, which has killed over 2,000 people, infected 74,000 and caused widespread economic disruptions.

Issuers of the virus NCDs include major state lenders such as Bank of China and Construction Bank, as well as small banks such as Bank of Kunlun and Bank of Changsha.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.