The government will sell 200 billion yuan of special treasury bonds to cool lending growth and provide cash for a fund that will seek higher returns on its currency reserves.

The bonds, to be sold to banks and individual investors, will be divided into two parts sold this month and by the end of 2007, the Ministry of Finance said on its website.

This month's issuance, to start on September 17, will include 10-year and 15-year debt, the ministry told underwriters.