Guan Eng says several Chinese banks keen to issue Panda bonds to help Malaysia

KUALA LUMPUR (July 2): Finance Minister Lim Guan Eng, who is in Beijing for his first working visit to China, said there are several Chinese banks who are interested in issuing Panda bonds to help Malaysia get out of its financial problems.

According to The Star, the minister met his Chinese counterpart Liu Kun, along with the senior management representatives of several banks — including from China Development Bank, China Construction Bank and The People’s Bank of China — over the matter today.

“All of them are interested in issuing the bonds. There are stil many details to be discussed, such as pricing and the terms and conditions offered by the banks,” Lim was quoted as saying.

He also declined to reveal the sum involved, saying the matter has to be discussed in Cabinet first.

Lim also reportedly said at a luncheon with Chinese investors earlier in the day that Malaysia and China are planning to set up a “special channel” for investors of both countries which would enable smoother investment processes and encourage more investments from both sides. The channel would also serve as an inquiry and problem-solving platform.

“This will strengthen the business ties of both countries towards a win-win situation,” he was quoted as saying..

Lim arrived in Beijing on Sunday (June 30). Tonight, he has left for Shanghai, where he is expected to attend dialogues with Chinese investors before leaving for Shenzhen, China’s Silicon Valley, where he is scheduled to visit several high-technology companies, including Huawei and Tencent.

Source: TheEdgeMarkets