(CBN - Global) May 12 -- CNY30 billion (USD4.62 billion) of governments bonds released yesterday sold out within hours. Although annual yields have fallen by 0.1 percentage points to 2.58 percent, government bonds are still popular investment channels among the elderly.
This is the third batch of such bonds to be released this year. "I came at six o'clock," said an old woman at the head of the queue at the Bank of China's Zhengjin Road branch in Shanghai. "I was sixth in line when I came in March but was unsuccessful, so I came very early today. That day, the bank opened at nine am and just four minutes later, the bank lobby manager announced that the government bonds had sold out."
Middle-aged and senior citizens like government bonds as they are safe. People in this age group do not know how to use smart phones and the Internet, and thus have fewer investment options than younger people.
"Since stocks have been consistently low and China has experienced a number of peer-to-peer lending platform defaults, government bonds have become the safest investment channel for elderly Chinese," Mr. Chen Xiaojun, a researcher at Shanghai Yingcan Business Consulting Co, said.