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Quality Service Supporting the Opening up of China Bond Market --CCDC Successfully Held Overseas Customer Conference in US

On June 26, 2018, China Central Depository & Clearing Co., Ltd. (hereinafter referred to as CCDC) successfully held an overseas customer conference in New York. Titled “Share the New Opportunities of the Opening up of China Bond Market and Foster a New Framework of Cross-border Collateral Management”, the conference was co-organized by the Industrial and Commercial Bank of China, Bank of China and Citibank, and joined by senior officials from the Consulate General of the People's Republic of China in New York and the American Representative Office of the People's Bank of China as well as representatives from Over 30 potential investors including BlackRock, CCSZF Management and Wells Capital Management.

CCDC, an important financial infrastructure of China, operates a central depository system which serves as the cornerstone of the bond market and a gateway to the opening up of China’s financial market. As the company’s debut in the U.S. market, the conference was a part of its initiatives to fulfill the China’s national financial opening strategy and to respond the People’s Bank’s call to further promote the opening up of China inter-bank bond market.

At the meeting, Supervisor of CCDC Bai Weiqun pointed out that China is now the 3rd largest bond market in the world, a “too large to ignore” market for asset allocation. With investment environment being improved continuously, higher spreads will still make RMB bonds increasingly attractive to international investors. The company is striving to build a bond-market functional platform with international influence and is committed to providing overseas investors with safe and efficient investment channels and services accessing China bond market. As of the end of April 2018, CCDC had opened accounts for more than 661 foreign investors, and the foreign-investor-held bonds under its depository amounted to nearly 1.2 trillion RMB bonds, accounting for 90% of the total bond holdings of overseas institutions.

Counselor Zhou Shanqing of the Chinese Consulate General in New York pointed that the opening up of China's financial industry has entered the “fast lane” and that the new modality of China’s economy has provided a broad space for the opening of the bond market. Bearing the mandates of major national FMI in mind, CCDC has always been at the forefront of market opening up and is the key driving force for the further internationalization of China's financial market.

Representatives of the ICBC and Citibank, co-organizers of the conference, gave their speeches on the opening up progress, outlook and investment strategies of the China bond market.

Cross-border collateral management service was another key theme of this event. The post-GFC regulatory revamp has brought about certain liquidity and collateral shortage to global financial industry, calling for high-quality and well-tailored cross-border collateral management services. The collateral balance under the management of CCDC Collateral Center has exceeded RMB 14 trillion, with more than 5,800 market participants. It is now the largest bond collateral management service platform in the world, covering the spot market, fiscal policy operation, monetary policy operation, social security system, foreign exchange management, derivatives markets, precious metals markets and cross-border collateral business. It is emerging as the “liquidity hub” and “risk management hub” of the RMB financial system.

The United States is the world’s largest bond market with diversified investor base, abundant product innovations and sound market mechanisms. CCDC’s customer conference provided overseas institutional investors with an in-depth understanding of the China bond market and its opening up process, advised quality options for U.S. investors’ global asset allocation, and demonstrated the scale and advantage of China’s financial market as well as the important role that CCDC plays in it. CCDC will continue to uphold the mission of providing safe, efficient and professional infrastructure services, to strive for the vision of building a world-class financial market infrastructure service organization, and to enhance its FMI functions in promoting the opening up of China bond market and the development of cross-border interconnection.

    Publish on :06/28/2018 14:38
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