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Regulations of the Treasury Bills of the People's
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1981.01.28
STATE COUNCIL OF CHINA
REGULATIONS ON THE TREASURY BILLS OF THE PEOPLE'S REPUBLIC OF CHINA
(Adopted by the Routine Meeting of the State Council on January 16,
1981 and Promulgated by the State Council on January 28, 1981)
 @@  Article  1.  The  Treasury Bills of the People's Republic of
China are determined to be issued from the year 1981 in order
to  regulate  and  stabilize  the  national  economy,  properly
centralise financial resources from  all  quarters,  carry out the
socialist  modernization  construction  and  gradually  raise  the
standards of the material and cultural life of the people.
 @@  Article  2. The Treasury Bills shall be mainly distributed and
issued  to  state   enterprises,   enterprises  of  collective
ownership,  competent  authorities  of  enterprises  and  local
governments. They shall be properly subscribed for by Party and
government   organizations,  bodies,  units  of  armed  forces,
institutions and opulent rural people's communes, production brigades
and  teams.  Individuals  shall  also  be  allowed to volunteer to
subscribe for them.
 @@  Article  3. The number of Treasury Bills to be issued each year
shall be determined  by the State Council and the issue shall begin
as of January 1 of that current year. All payments must be made on
or before June 30 and the interest therein shall be calculated from
July 1 of that current year.
 @@  Article  4.  The annual interest shall be fixed at 4% for the
Treasury Bills.  The  interest of the Treasury Bills shall be paid
in one lump sum when the principal is repaid and no compound interest
shall be calculated.
 @@  Article  5.  The  Treasury  Bills  shall  be calculated in
Renminbi. The Treasury Bills are of 8 different denominations: 10 yuan,
50 yuan, 100 yuan, 500 yuan, 1,000 yuan, 10,000 yuan, 100,000 yuan and
1,000,000 yuan.
@@ Article 6. From the sixth year of the issue of the Treasury Bills,
lots shall  be  drawn at a time specified and the principal shall be
repaid by 5 different  payments in 5 years in accordance with the
amount of issue, no less than 20% of the total amount to be repaid each
time.
 @@  Article 7. The issue of the Treasury Bills, the repayment
of the principal and the payment of the interest shall be handled by
the People's Bank of China and its subordinate organizations.
 @@  Article  8.  The funds raised by means of the Treasury Bills
shall be used  in  a  unified  way  by  the  State Council in
accordance  with the development and overall balance of the national
economy.
 @@  Article  9.  The  Treasury Bills shall not be circulated as
money and shall not be freely bought and sold.
 @@  Article 10. Those who forge the Treasury Bills or damage
their reputation shall be punished according to law.
 @@ Article 11. The Ministry of Finance shall be authorized by the
State Council  to  handle the interpretation of the Regulations on
the Treasury Bills.




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