China's central bank has given the green light for eligible enterprises to sell short-term bonds to qualified institutional investors in the country's interbank market beginning Tuesday.

The People's Bank of China, or the central bank, issued the Rule on Management of Short-Term Bonds and two related documents on its website.

A bank spokesman noted that the move will help the enterprises widen financing channels, better implement monetary policies, prevent excessive growth of money supply, promote the coordinated development of monetary and capital markets and safeguard the stability of the entire financial system.

Enterprises issuing such bonds should be filed at the central bank, the spokesman said. The businesses are only allowed to sell the bonds to institutional investors, which excludes the public.

Source: Xinhua