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Embracing New Era, Sharing New Future, and Jointly Grasping New Opportunities of China Bond Market Opening-up 2018 CCDC Overseas Investor Annual Conference and the Release of “ChinaBond-Overseas Institution Investment Index”

On December 13, 2018, 2018 CCDC Overseas Investor Annual Conference (and the Releasing Ceremony of “ChinaBond-Overseas Institution Investment Index”) was successfully held in Lujiazui, Shanghai. The event was co-organized by CCDC, International Capital Market Association (ICMA) and Global Asset Management Association of Lujiazui (GAMAL).

Leaders from the financial regulatory authorities and more than 300 representatives from over 170 institutions including the World Bank, New Development Bank, Norwegian Central Bank, Bank of Thailand, Bank of Malaysia, Industrial and Commercial Bank of China, Bank of China, HSBC, Citibank, BlackRock, Vanguard and Fidelity attended the meeting.

Zheng Yang, director of the Shanghai Municipal Bureau of Financial Supervision, said in his opening speech that the three major tasks announced by General Secretary Xi Jinping at the first China International Import Expo should be well understood. He stressed the importance of promoting the spirit of Shanghai City in accordance with the goal of improving the city's core competitiveness proposed by Municipal Secretary Li Qiang, which has provided new enlightenments and new ideas for the construction of Shanghai's international financial center. This year, Shanghai was lifted to fifth place in the GFCI ranking, thanks to the important contribution of financial markets including the bond market. By 2020, Shanghai is committed to building a RMB asset pricing center, a payment and clearing center, and a RMB asset allocation center. These aims are closely related to the opening-up and innovation of the bond market. The commitment requires the participation and cooperation of various financial market institutions and institutional investors at home and abroad, whose mutual development will push forward Shanghai IFC construction to a new stage.

Bai Weiqun, Supervisor of CCDC and President of CCDC Shanghai Headquarters, pointed out in his opening speech that the Company is the core financial infrastructure and the opening-up gateway of the China bond market. The company is committed to facilitating participation of global investors in China by providing safe, efficient and professional financial services. As of the end of October 2018, about 750 foreign institutional investors have entered the market in a direct mode and their holding of bonds amounted to about 1.45 trillion yuan (averagely 20 billion for each investor). This mode of "Direct Flight" has become the main channel for foreign investors to invest in China's bond market. CCDC hosts most of China's sovereign bonds and quasi-sovereign bonds, which are the most important RMB asset pool and the most preferred underlying asset classes for global investors who are intended to allocate RMB assets in their portfolio. At the end of 2017, the Company set up its Shanghai HQ in an effort to support the strategy of Shanghai International Financial Center Construction. Shanghai HQ gathers some core functional platforms such as cross-border issuance, cross-border settlement, collateral management, pricing and data center, promotes overseas interconnection and cooperation by adopting PFMI, and continuously improves its service capabilities. The company will work with global investors to create a new future for the opening and development of the China bond market.

Martin Scheck, CEO of the International Capital Markets Association (ICMA), gave a keynote speech at the conference. He introduced ICMA’s operation in China as well as its cooperation with the CCDC. ICMA is an institution that sets industrial standards for international financial markets and is also a trade association for international securities markets. Its members include issuers, primary and secondary market intermediaries, central banks, asset managers, investors, capital market infrastructure providers, rating agencies, and law firms. Martin Scheck expressed his confidence in the Chinese market and the vision of continued good cooperation with CCDC. He encouraged global investors to actively participate in the Chinese market.

In his keynote speech, Lu Lei, deputy director of the State Administration of Foreign Exchange, gave a comprehensive note to China's macroeconomic situation and cross-border capital flow dynamics as well as an outlook of the opening up of financial markets. He pointed out that China's macro economy is in a new normal state characterized by stable long-term growth and persistent shocks. At present, China's foreign exchange reserves are stable, foreign debt risks are controllable, and the RMB exchange rate will remain basically stable. The volume and price indicators of cross-border capital flows demonstrates the attractiveness and safe-haven ability of China's fundamentals for foreign investors. He noted that unswervingly opening up of financial markets is an important strategic deployment at the central and national levels. In recent years, China has made great achievements in cross-border interconnection, QDII and QFII investment quotas, and the construction of free trade zones. The “Global Connect” mode of bond market has continued to develop and improve. The opening up of the financial market will remain a long-term preference of China, which itself has the functions of serving the real economy and preventing and controlling financial risks. In the future, China will continue to promote the two-way opening up of the capital market, build a competitive foreign exchange market, and keep improving the financial infrastructures.

The leaders and guests of the annual conference attended the releasing ceremony of the “ChinaBond-Overseas Institution Investment Index”, the first index compiled by China inter-bank bond market dedicated for foreign institutional investors. The Index will serve as the most authoritative and objective benchmark for foreign institutional investors to participate in the Chinese bond market.

The event was also featured by a series of panel discussions on some hot topics including China bond market opening up, green bonds, proxy settlement service, overseas participation in China bond market, standard construction, green bond indices, Lujiazui financial city, interconnection of global markets, “Global Connect” mode, etc.

    Publish on :12/14/2018 17:02
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