Chinese companies may not be overwhelmed by the limited yield that newly-introduced certificates of deposits (CDs) are offering, but they are proving to have other uses. Corporates have started pledging them as collateral to lock-in difficult to access offshore financing.

One such example includes a major oil and mining company based in Fushan, which secured $15 million in offshore financing by using a certificate of deposit (CD) as collateral, China Business News reported on June 15.