By the end of this year, China may allow companies to issue short-term financing bills with a maturity between seven to 270 days, the Shanghai Securities Journal reported Friday.

According to the report, the proposed finance tool — known as ultra short-term financing bills — would first be issued by central enterprises like China Mobile and China National Petroleum Corporation as a pilot program.

Previous media reports revealed that the rule for the product had already been drafted.

The current short-term financing bills have maturity periods of three months to one year. The new product will enrich the money market instruments.

(chinadaily.com.cn December 4, 2010)