China's Baoshang Bank plans to resume NCD issuance on Wednesday - traders


BEIJING/SHANGHAI, May 28 (Reuters) - China's Inner Mongolia-based Baoshang Bank [RIC:RIC:BAOTO.UL] plans to resume issuance of negotiable certificates of deposit (NCD) on Wednesday, traders with direct knowledge of the matter said.

The lender has sent inquiries through brokers, the traders said. Trading in Baoshang's NCDs was suspended on Monday.

Yields on the upcoming NCD issuance are likely to be at the same levels as before the lender was taken over by regulators on Friday, traders said. The NCDs will be issued in one-month, three-month, six-month and one-year tenors.

NCDs are popular short-term debt instruments traded in China's interbank market.

Baoshang could not immediately be reached for comment.

Citing serious credit risks, the China Banking and Insurance Regulatory Commission (CBIRC) took control of Baoshang Bank for a year from May 24, in a rare move for a regulator.

(Reporting by Xiangming Hou, Andrew Galbraith and Winni Zhou; Editing by Sam Holmes)

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