China will begin to issue 28 billion yuan (US$3.68 billion) worth of book-entry treasury bonds on Thursday, the 13th batch of its kind issued this year.

The 20-year T-bonds carry an annual interest rate of 4.52 percent, the Ministry of Finance said in a statement on Wednesday.

The bonds will be sold via the national inter-bank bond market, the stock market and commercial banks from August 16 to 21, and will be available for trading on the stock market and over the counter at designated commercial banks from August 24.

With a fixed interest rate, the interest will be paid every half year.

The ministry said the T-bonds were available to investors with accounts for investments in funds, shares and bonds at China Securities Depository and Clearing Co., China Treasury Bonds Depository and Clearing Co. or designated commercial banks.

China issued book-entry treasury bonds totaling 652.72 billion yuan last year, 150 billion yuan more than in 2005.

The government pledged earlier this year to cut the issuance of treasury bonds in 2007 by a "modest" amount, in a bid to reduce its financial deficit and expand channels for direct financing.

(Xinhua News Agency August 16, 2007)