Agricultural Bank of China (ABC) will act as a middleman in channeling the first batch of 600 bln yuan in special treasury bonds from the Ministry of Finance to the central bank, the official Securities Daily confirmed, citing an ABC official.

The first special bonds batch is expected to be issued next Wednesday or Friday, the report said.

The National People's Congress, or China's parliament, had earlier approved the issue of 1.55 trln yuan of special treasury bonds by the Ministry of Finance. The proceeds will be used to buy foreign exchange from the central bank, and capitalize a new foreign exchange reserve investment agency.

Currently, Chinese law prohibits the treasury from directly issuing bonds to the central bank.