Savings treasury bonds (including voucher and electronic) are non tradable registered treasury bonds issued by the government (Ministry of Finance) to individual investors, with the purpose of absorbing personal savings funds and meeting the long-term savings investment demand. Electronic savings treasury bond is a kind of saving national debt which records creditor's rights in electronic way. Compared with voucher type savings bonds, electronic savings bonds have more varieties, more convenient purchase and more flexible interest rates. Because of its non tradable nature, there will be no capital gains at any time. This is the same as the existing certificate treasury bonds, mainly to encourage investors to hold till maturity.
The purchase, withdrawal, settlement and transfer of savings bonds are initiated and managed by the savings and treasury bonds system; qualified banks will allocate a certain amount of savings treasury bonds, so as to carry out accounting business processing such as purchase, withdrawal, settlement and transfer of savings bonds, and investors can purchase, withdraw and settle transfer accounts through qualified banks. The bank shall collect and the advance payment and carry out the accounting with the Ministry of finance with the issue of savings treasury bonds on a quarterly basis.
The core business functions includes: subscription of savings treasury (certificate and electronic) savings bonds, cancellation of subscription of savings treasury bonds, withdrawal of savings treasury bonds, withdrawal of savings treasury bonds, settlement and transfer, repayment of principal and interest of savings treasury bonds and collection of payment (clearing accounting is handled by independent clearing accounting system).
