TNAG-2292-FCO40-3304-Official-visits-from-Hong-Kong-to-China-1991 — Page 22

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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12

significantly its

the

Bank

stance towards lending to China(22)

Consistent with the objective of the World Bank, the ADB

provided a technical assistance grant of US$0.6 million to

People's

of China for stock market

Following the successful co-financing

(together with some commercial banks) of the Nanpu Bridge

in Shanghai in May 1991, the ADB is planning another

co-financing loan of US$85 million for an acrylic fibre

development(23)

plant in Anhui.

15.

The Chinese government was taking advantage of

the more favourable external environment to raise funds in

the international capital market. The Bank of China (BOC)

decided in late June to issue bonds totalling ¥20 billion

(about US$143.2 million) in Tokyo(24). The Japan Bond

Research Institute, a designated Japanese credit rating

agency, rated this ¥20 billion bond issue at double-A

minus. But the Moody's Investors Service Inc. assigned a

rating of Baal only. This was already the country-rating

ceiling for China, although Moody's accepted that BOC was

itself a strong financial institution. This was China's

(22) In July

(23)

(24)

1991,

the

ADB

approved a loan of US$65 million for a coal-fired power plant in China's Luliang Prefecture. The loan will be repaid over 25 years, with an interest rate set accordingly to the Bank's pool-based variable lending rate system.

The ADB grant is intended for use in preparing legislation on issuance and trading of securities and in developing a regulatory system which will allow the participation of foreign investors.

These bonds carry a coupon rate of 7.7% and were priced at ¥100.8 to yield 7.48%. They will mature on 8 July 1996. This was the seventh bond issue floated by the BOC in Japan since 1984.

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