On December 12, 2019, Shui Ruqing, Chairman of CCDC, met with the visiting World Bank Group (WBG) Vice President and Treasurer Mr. Hua Jingdong and the WBG delegation. Both sides exchanged views on the opening up of China's bond market, the latest market developments and trends, and the potential areas of cooperation. Their meeting was accompanied by Zong Jun, the Chief Business Officer of CCDC, as well as the executives of Chinabond Collateral Center, Chinabond Cross-border Settlement Center and ChinaBond Pricing Center.
Shui Ruqing gave a brief introduction of the core role and important functions of CCDC in China's bond market. He pointed out that CCDC is an important financial infrastructure at the national level. It plays an irreplaceable role as a core operating platform for bond market, a platform for the implementation of national macroeconomic policies, a platform for the formation of financial benchmark prices, and an important portal for the opening up of the China’s bond market. As of the end of November 2019, about 1,100 overseas institutions, including 75 central banks and sovereign wealth funds, have opened accounts with CCDC, with a total bond holding of approximately 1.6 trillion yuan, accounting for about 90% of China’s domestic bonds held by overseas investors. CCDC provides one-stop full-life-cycle services including bond issuance, registration and custody, transaction settlement, interest payment and redemption, valuation, collateral management, and information disclosure, and has become a comprehensive service provider in the Chinese bond market. The unique market position, all-around service, top-notched customer base, and cross-market and cross-regional interconnectedness capabilities make CCDC a leading player in conducting cross-border cooperation and serving international customers. CCDC looks forward to carrying out in-depth cooperation with WBG.
Vice President Hua Jingdong acknowledged the rapid growth of China's bond market and the significant contribution made by CCDC. He introduced the functions of the World Bank Treasury and WBG’s innovative practices in using the global bond market to support development finance and exploring the application of fintech. Hua emphasized the importance of financial market infrastructure construction, which is, as he believed, an important factor behind the rapid and healthy growth of China's capital market. Hua stated that the year 2020 will be the 40th anniversary of the establishment of a cooperative relationship between the World Bank and China. With the RMB included in the Special Drawing Rights (SDR) basket, the demand for RMB assets by foreign central banks and sovereign investment funds is expected to increase. World Bank will strengthen engagement in RMB bond market and try to share the successful experience of China's capital market development with the other developing countries. He welcomed CCDC to actively cooperate with the World Bank in the areas of bond issuance, investment, innovation, fintech and financial infrastructure construction.
The World Bank is one of the most important financial organizations in the world. Its Treasury is responsible for financing sustainable development using global capital markets, and delivering investment consulting and capacity building support to more than 70 central banks and sovereign wealth funds around the world. CCDC has a very close relationship with the World Bank. Actually, the establishment of the CCDC is based on one of the World Bank technical assistance projects with China. CCDC has been actively participating in the World Bank technical assistance on China's economic reform, modern financial system and governance, promoting the construction of China's bond market. CCDC’s 3-month Treasury bond yield curves have been included in the SDR interest rate basket, and the RMB interest rate indices jointly prepared with the World Bank were officially released in 2018. In the future, CCDC will continue its cooperation with the World Bank and further explore the potential for cooperation between the two parties in cross-border business, collateral management, valuation and research, thus to make greater contributions to the opening up of China's bond market.