Central Huijin Investment Corporation is expected to sell seven-year bonds in China's interbank market on Tuesday, at a coupon rate of about 3.27 percent. Analysts say it reflects strong demand amid ample liquidity.
Huijin, the country's largest state-controlled bank, is raising funds as part of efforts to replenish the capital of the country's banks. Huijin is offering 20 billion yuan of seven year bonds and 20 billion yuan of 20-year bonds. Traders also expect Huijin to sell 20-year bonds at a coupon rate of around 4.12 percent.
Huijin's bonds have been classified as risk-free. Experts are expecting strong demand, given the company's strong credit.