2019 CCDC Middle East Investor Seminar Successfully Held in Dubai
On 15 October 2019, China Central Depository & Clearing Co. Ltd (CCDC) successfully held a Middle East Investor Seminar in Dubai under the theme “New Opportunities from Opening up, New Services from CCDC”. Co-organizers of this seminar were Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China(ABC), Bank of China (BOC), HSBC and International Capital Market Association (ICMA). Over 100 representatives from leading international organizations attended this event, including Consulate General of China in Dubai, Abu Dhabi Investment Authority (ADIA), Arab Bank, Abu Dhabi Commercial Bank (ADCB) and Commercial Bank of Dubai. 2019 marks the 35th anniversary of the establishment of the diplomatic relations between China and the United Arab Emirates (UAE). The seminar held this year embraces the historical trend of China and the UAE to enhance friendly exchanges and promote all-round cooperation. It is also conducive to enhancing the recognition of RMB bonds by Middle East investors, strengthening financial exchanges and cooperation, and promoting mutual benefit and win-win results in the field of economy and trade.
Mr. Xu Liangdui, Vice President of CCDC, said during the seminar that since PBOC released the No.3 Announcement in 2016, China’s bond market has realized fully opening-up to foreign institutional investors. In recent years, China’s bond market was accelerating its pace of opening up at an unprecedented speed, and the focus of opening up had been transformed from width to depth. In the face of a growing global investor base and increasingly diversified client needs, CCDC provides international clients with a one-stop investment service solution covering the entire bond life-cycle by leveraging its professional advantages in bond issuance, registration, depository, settlement, valuation and collateral management. By the end of August 2019, the amount of bonds held by overseas investors deposited with CCDC reached 1.7 trillion RMB, accounting for 90% of the total foreign holdings in China Interbank Bond Market (CIBM). Among the total foreign holdings in CCDC, nearly 1.5 trillion is via direct access channel (Global Bond Connect), accounting for 88% of the total number. Acting like a direct flight, Global Bond Connect is the mainstream channel to access the CIBM. In the future, CCDC will continue to play its role as a gateway to the opening-up of China’s bond market, further promote its strategy of internationalization, and continuously improve its service for international clients. In the meantime, CCDC will actively respond to and implement the “Belt and Road” Initiative to further facilitate Middle East and global investors’ participation in China’s bond market and allocation of RMB-denominated assets.
Mr. Jin Lei, Counsellor of the Economic and Commercial Section of the Consulate General of China in Dubai, gave a keynote speech on the economic and trade exchanges and financial cooperation between China and the UAE. Mr. Jin introduced the long-term strategic partnership and friendly exchanges between the two countries, and said that under President Xi’s “Belt and Road” Initiative, the need and the motivation for two-way cooperation became even stronger. Both sides attach great importance to the bilateral economic and trade exchanges and cooperation, and have made great efforts in promoting mutual complementary and win-win cooperation in financial markets. He also welcomed investors from the UAE side to consider investing in Chinese bonds so as to share the dividends of China’s economic growth.
Chen Jianheng, Managing Director of the fixed income department of China International Capital Corporation Ltd. (CICC), then delivered a keynote speech on Investment Opportunities under the Opening-up of China’s Bond Market, revealing the low-correlation and high-yield characteristics of China’s bond market under the circumstance of the global changing economy and negative rate trend and the mid/long term investment value of China’s bond in the context of inclusion of global indices.
In the panel discussion session, experts from BOC , ICBC, JPMorgan Chase and Taikang Asset Management discussed RMB asset allocation and direction of investment under the background of RMB internationalization. They believe that as China’s bond market continues to open up, recognition of RMB bonds in international market will be further enhanced, and its importance in global asset allocation strategy will also increase. Meanwhile, under current global economic situation, China’s bond market opening-up has also brought more investment opportunities and strategic options to global investors. The discussion was then joined by experts from HSBC, ABC, Standard Chartered and Bloomberg, who shared respectively their investment experiences in China’s bond market from different perspectives, providing useful references for Middle East investors to participate in this new market.
With its well-developed infrastructure and financial services, Dubai has been continuously promoting its position as a global financial center, and has become a crucial hub for major international financial groups in Middle East. This is the first time for CCDC to hold overseas investor activities in Middle East. The seminar focusing on new opportunities and new services against the background of steady opening-up of China’s bond market has conveyed a message of friendly cooperation and mutual benefit, and illustrated the Chinese style of openness, inclusiveness and mutual learning, which helped to further advance the recognition and influence of RMB bonds in regional and even global market, and to strengthen the formation of a diversified and open pattern of China’s bond market.
Going forward, CCDC will remain committed to its mission and give full play to its important role as a core financial market infrastructure and the gateway to the opening-up of China’s bond market. CCDC also endeavors to leverage its professional advantage to build a secure, efficient, open and transparent service platform for China’s bond market, so as to ensure its sustained opening-up and innovative development.