Tradable CDs 'key step' toward market reform

The People's Bank of China said on Tuesday that it will allow the issue of large-denomination, floating-rate tradable certificates of deposit to individuals and companies, a key step forward in interest rate liberalization.

The CDs, which are deposit agreements by lenders, will be tradable in the secondary market. There will be nine maturities ranging from one month to five years, the central bank said in an online statement.

The floating rates will be based on the Shanghai Interbank Offered Rate, it said.