Jiangsu sells bonds through private placements

    JIANGSU Province yesterday sold approximately 45 billion yuan (US$7.26 billion) in ordinary and special purpose bonds through private placements, sources said.

    Interest rates for the bonds will be capped at 15 percent higher than the average yield for Chinese treasuries of the same tenor over the past five days, four individuals with direct knowledge of the matter said. Of the roughly 45 billion yuan, 33.9 billion is ordinary debt and the remainder is special program debt, the sources said. Bond tenors included three, five, seven and 10-year issues.

    Tianjin to auction bonds June 8

    NORTH China’s Tianjin will auction 13.2 billion yuan (US$2.13 billion) in bonds ranging in tenors from three to 10 years June 8, according to a notice on the website of a major bond clearing house published yesterday.

    Tianjin will be the eighth local government to auction municipal bonds in China this year. The 13.2 billion yuan action comprises three-year bond issues of 1.5 billion yuan, and five-year, seven-year and 10-year bond issues of 3.9 billion yuan each.

    Shenwan Hongyuan tightens margin trading

    THE brokerage unit of financial firm Shenwan Hongyuan Group Co. has stopped lending money to clients to buy shares in Ping An Insurance Group, the latest move in China’s drive to tighten margin financing rules to curb stock market risks fueled by a record amount of borrowed money.

    Starting yesterday, Shenwan Hongyuan Securities no longer lends money to clients who want to purchase Ping An shares with borrowed funds. The Shenwan move came after several brokerages took measures to regulate the margin trading business last week. Separately, Xinhua reported yesterday that Qilu Securities, a medium-size domestic brokerage firm, also stopped lending their clients money to buy shares in Ping An.

    CNNPC aims to raise US$2.13b in IPO

    CHINA National Nuclear Power Co. (CNNPC), a unit of one of the country’s two state nuclear reactor builders, yesterday said it aims to raise 13.19 billion yuan (US$2.13 billion) in potentially the largest initial public offering (IPO) in almost four years in China.

    The company intends to issue 3.891 billion shares at 3.39 yuan a piece and will start taking subscriptions from investors today, according to a prospectus published on the Shanghai Stock Exchange.