Former DMD of IMF Zhu Min Addressed “No. 10 Financial Street Forum” Hosted by CCDC
Global Political and Economic Transition and Opening up of Bond Market
The Venue of the Fourth “No. 10 Financial Street Forum”
CCDC President Chen Gangming chaired the forum
On April 12, CCDC hosted in Beijing headquarter the fourth “No. 10 Financial Street Forum”, titled “Global Political and Economic Transition and Opening up of Bond Market”. Dr. Zhu Min, the former PBC deputy governor, former deputy managing director of IMF and dean of the National Institute of Financial Research of Tsinghua University, and Dr. Wang Yizhou, associate dean of School of International Studies of Peking University attended the forum and delivered keynote speeches on global political and economic developments. Experts from governments, market entities and think tanks made panel discussions on the international financial situation, the opening up of China bond market and the trend of bond market for the second quarter.
Dr. Zhu Min, the former PBC deputy governor, former deputy managing director of IMF and dean of the National Institute of Financial Research of Tsinghua University, addressed the forum
Having listened to the briefings of the CCDC’s development, Dr. Zhu Min pointed out that, as a core operating platform of the financial market, CCDC has great potential in expanding its capacity in data analysis and think tank research. He highlighted the importance of CCDC serving as a platform for the exchange of ideas, and encouraged the company to make better use of its specialized expertise as a core part of national financial infrastructure, strengthen its cooperation with global markets and institutions, and obtain more traction. In his keynote speech titled “Trump Shock: Economic Policy and Global Impact", Dr. Zhu Min believed as Trump assumed the office, the gradual rising of US short-term interest rates since 2015 will manifest itself further in the near term. The number of scheduled interest rate hikes does not matters much, but the fact that the Fed rate is now firmly on an upward trajectory means the global liquidity will immediate meet an inflection point, which is by any means a historical change. He noted that the United States is undergoing a profound structural change as Trump's economic policy will generally be a mix of tightened monetary and accommodating fiscal policies, but much uncertainty remained on how to implement these policies. The biggest global uncertainty in the future would be US economic and financial performance, in view of the ever-increasing connections and volatility of global financial markets since the last global financial crisis, noted Dr. Zhu Min.
Dr. Wang Yizhou, associate dean of School of International Studies of Peking University addressed the forum
Dr. Wang Yizhou analyzed the global political situations after Trump’s taking office, and noted that, Trump’s new policy agenda mainly aims to secure a strategic contraction, refraining from some of US international obligations, and prioritizing domestic affairs. This could to some extent lower the capability of some international organizations. The recent summit of China and US leaders has brought better-than-expected results, providing more opportunities for cooperation between China and US as well as among the international community.
Panel Discussion: Global Financial Situations and the Opening up of China Bond Market
Lu Xiaoming, chief economic analyst with Xinhua News Agency coordinated the Panel Discussion “Global Financial Situations and the Opening up of China Bond Market”, joined by Wang Yu, researcher with Research Bureau of People's Bank of China, Zong Liang, chief researcher with Bank of China, Xie Yaxuan, chief macro economic analyst with China Merchants Securities, Xiao Lisheng, deputy director of International Political Economy Division of Institute of World Economics and Politics (IWEP) of CASS. The guests agreed that, recent years witnessed a global divergence of the monetary policies and a increasing flexibility of the RMB exchange rate. An efficient management of cross-border capital flows and further development of China's financial markets calls for the opening up of China bond market. With total market size of more than 60 trillion yuan, the future of market opening is promising.
Six Experts’ Talks on Current China Bond Market Investment
Mr. Zong Jun, the executive editor-in-chief with Bond Monthly, chaired the panel of “Six Experts’ Talks on Current China Bond Market Investment”, attended by Wu Zhixiong, division director of Treasury Department of China Development Bank, Zhang Ming, chief economist with Ping An Securities, Guo Jiemin, executive general manager of Bond Investment Department of China Galaxy Securities, Yang Aibin, President of Pengyang Assent Management, and Niu Yurui, deputy general manager of the CCDC ChinaBond Pricing Center. The panelists forecast the macroeconomic situation, monetary policy, liquidity condition and bond market investment strategy for the second quarter of 2017. They believed that the domestic macroeconomic performance in 2017Q2 would be generally stable, and that a prudent neutral monetary policy stance will be maintained giving the domestic policy actions of “preventing risks and de-leveraging” and the external backdrop of USD interest rate hike. The guests expected a volatile and weak bond market performance in 2017Q2, but a discretionary investment strategy will still hold.
the award ceremony of "Ten Best Articles in 2016" of "Bond Monthly"
The forum also held the award ceremony of "Ten Best Articles in 2016" of "Bond Monthly" magazine and the Annual Outstanding Writers Award for ChinaBond.com.
CCDC has successfully hosted a series of “No. 10 Financial Street Forum” events, which aim to promote in-depth, practical and cross-sectional talks on frontier topics. The current event were attended by more than 200 delegates from the industry.