SHANGHAI, Aug 15 (Reuters) - The Shanghai Commercial Paper Exchange said on Thursday it had established standardised notes to improve liquidity support for small- and medium-sized financial institutions.
The first such notes to be issued, in an amount not exceeding 500 million yuan ($71.2 million), are backed by discounted commercial paper accepted by China’s Bank of Jinzhou, the exchange said in a statement.
The exchange said the yield of the notes, with three-month tenors, would use the yield of negotiable certificates of deposit issued by Bank of Jinzhou as a reference, and would be in a range of 4.55% to 5.35%.
The exchange is overseen by China’s central bank. ($1 = 7.0276 Chinese yuan) (Reporting by Andrew Galbraith; editing by Gopakumar Warrier)