Bank Deposits and Deposit Insurance Scheme

secondary market: Unlike ordinary deposits, the large-denomination CDs must have a minimum size of 300,000 yuan for individual subscribers and 10 million yuan for institutions, and they must be offered at market-determined interest rates, according to the regulations, according to Global Times China. The CDs are also covered by the new deposit insurance scheme, which came into force in May, making them as safe for investors as ordinary bank deposits. To help explain the new option, which might appear too technical for many average investors, provisional regulations for management of the CDs were released last week by the People Bank of China , the country central bank. The CDs are also tradable on the secondary market and can be mortgaged for loans, offering greater flexibility. Back in December 2013, when the PBC announced that banks would be allowed to issue large-denomination CDs, initially available only to other lenders in the interbank market, many market watchers said the CDs would eventually be made available to the public as well. While investors are pondering the attractiveness of the new instrument, others have pointed out that it marks a key step toward interest rate liberalization. (news.financializer.com). As reported in the news.