SHANGHAI — Chinese banks are rushing to issue low-cost deposits via the interbank market to help fund companies that are fighting the coronavirus outbreak.
A total of 26 banks are issuing negotiable certificate of deposits (NCDs) on Thursday to raise roughly 17 billion yuan ($2.43 billion) in total that will to be lent to companies involved in epidemic prevention and control, according to the National Interbank Funding Center.
Such “virus NCDs” carry lower interest rates than normal NCDs, which could help lower funding costs for such companies.
China has already encouraged the issuance of anti-virus bonds, and virus loans, to help channel more money into sectors that have been hardest hit by the outbreak, which has killed over 2,000 people, infected 74,000 and caused widespread economic disruptions.
Issuers of the virus NCDs include major state lenders such as Bank of China and Construction Bank, as well as small banks such as Bank of Kunlun and Bank of Changsha.
(Reporting by Samuel Shen and Josh Horwitz; Editing by Kim Coghill)
