On 30 December 2015, China Development Bank ("CDB") published announcements in English for its first benchmark bond offerings in 2016. This is a pioneering move amongst Chinese financial institutions, which is aimed at assisting offshore investors to better understand the key terms and conditions of CDB's bond offerings. CDB will continue to provide announcements in both English and Chinese for issuances of its benchmark bonds in the future. The English announcements will be available at the English official websites of CDB, CFETS, and CCDC, and also on Bloomberg terminals.
The treasury department of CDB explains that after the inclusion of Renminbi into the SDR and as China's bond market speeds up in opening itself to the world, the demand from offshore investors for highly rated, liquid Chinese bonds, such as those issued by CDB, has been rapidly growing and the need has arisen for publication of English announcements. In order for offshore investors to better understand the schedule and details of CDB's bond offerings, CDB initiated the first-ever English announcements in the Chinese domestic bond market, after referencing government bond announcements of the US, the UK, and Hong Kong SAR. This initiative is a milestone event in the opening-up of the Chinese domestic bond market.
CDB is a major development financial institution in China that utilizes bond issuance as its main financing channel. With an annual issuance of over RMB 1 trillion and cumulative total issuance of 12 trillion since 1994 in the Chinese domestic bond market, CDB's outstanding bonds account for approximately one-fifth of the total size of the Chinese domestic bond market. Amongst all Chinese financial institutions, CDB has the largest bond issuance volume and the most comprehensive and innovative bond products. As of 30 November 2015, offshore investors' holdings of CDB bonds in the Chinese inter-bank bond market totaled RMB 109.1 billion.
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