CCDC Overseas Investors Conference Successfully Held in Tokyo
On 15th May, 2019, China Central Depository & Clearing Co., Ltd. (CCDC) held the “New Era, New Opening-up, New Future” investment promotion meeting for Japanese investors, in Tokyo, Japan. The meeting was co-organized by the Bank of China, Sumitomo Mitsui Banking Corporation (SMBC) and HSBC, and was attended by more than 140 representatives of nearly 80 overseas organizations, including People’s Bank of China Tokyo Office, Bank of Japan, Japan Securities Dealers Association (JSDA), Japan Exchange Group, Development Bank of Japan Inc. (DBJ), SMBC, MUFG Bank, Mizuho Bank (MHBK), and Japan Trustee Services Bank.
In his opening remarks, Mr. Zong Jun, the Chief Business Officer of CCDC, pointed out that China and Japan maintain close cultural and economic exchanges and cooperation, and that financial cooperation always plays an important role in the bilateral economic and trade cooperation. In terms of bond investment, the last few years witnessed a significant rise in Japanese investors’ interest in RMB bonds. CCDC serves as the central securities depository that registers the most diversified classes of financial products, deposits the largest volume of outstanding bonds, and handles the largest volume of transaction settlement in China, and thus has always been a gateway to the China’s bond market as the market opens to the world. Mr. Zong Jun said that CCDC welcomes more Japanese investors to enter the China’s bond market to benefit from the opening-up of this market and China’s economic growth. In the process, CCDC shall leverage its strategic global business network and superior expertise to provide Japanese investors with one-stop and full-life cycle financial market infrastructure services.
Following the opening remarks, Tomoyuki Fukumoto, Deputy Director-General of International Department, Bank of Japan, delivered a keynote speech on the prospects of the Chinese macro-economy from the perspective of Bank of Japan. He gave an overall introduction on the Chinese macro-economy, and conveyed a very positive attitude of the Japanese supervisory authorities, which added to Japanese investors’ confidence in the Chinese economy and RMB asset investment.
Experts from the Marketing Department, Cross-border Settlement Center and Collateral Management Service Center of CCDC Shanghai Headquarters then gave presentations on a range of topics, including the “CCDC Overseas Investor Services”, “CCDC’s Value-added Services for China’s Interbank Bond Market”, and “Insights into Cross-border Collateral Management and China’s Practice”. These comprehensive introductions further familiarized Japanese investors with the China’s bond market and the range of services offered by CCDC.
During the panel discussion “RMB Asset Allocation and Investment Strategy for RMB Bonds”, experts from Bank of China, Sumitomo Mitsui Asset Management, Industrial and Commercial Bank of China, Neuberger Berman, JP Morgan, and CITIC Securities shared their insights from varied perspectives. Experts pointed out that, in recent years, regulators have further lifted the restrictions on overseas investors’ access into the market, and also issued a number of policies to facilitate and encourage overseas investors to invest in China’s bond market. Meanwhile, China’s bond market has gradually grown into a size too big to ignore. The inclusion of RMB bond into the Bloomberg-Barclays Global Aggregate Index, among others, has also added to the favorable environment. As a result, allocation to RMB bonds has increasingly become a strategic choice for institutions.
In the next panel “Comparing the Modes of Accessing China’s Interbank Bond Market”, experts from HSBC, State Street Bank, Bank of China, Nikko Asset Management, Bloomberg, and FTSE Russell compared different channels of accessing CIBM. Experts focused their discussions on direct access and investment under the global connect mode, as well as opportunities and challenges facing the China’s bond market after RMB bond’s inclusion into international indices. Experts said that the FTSE Russell Index is also considering its plan to include RMB bond after the inclusion by Bloomberg-Barclays Global Aggregate Index, and this will further attract considerable amounts of investors and capital into China’s bond market. Meanwhile, experts also brought to attention the heated topics that overseas investors take heed of when accessing China’s bond market, such as direct links between domestic and overseas trading platforms, diversification of trading varieties, optimization of trading settlement process, and follow-up arrangements of tax policy.
As a prestigious global financial center, Tokyo is home to a number of world-renowned multinational financial institutions, as well as major Japanese financial groups. The investor promotion conference marks the first time in recent years that CCDC holds events to have exchanges with overseas investors in Japan, and has well demonstrated the positive image of CCDC to the Japanese market and Japanese investors. The conference has conveyed messages covering a full range of aspects including the macro-economy, markets, services, strategies, etc., and could hopefully prove conducive to familiarizing Japanese investors with the China’s bond market and helping them better navigate the Chinese market.
After two decades of development, the China’s bond market has grown into the third largest in the world. It is anticipated to further expand and develop as RMB bonds are included into international bond indices and gain continuously increasing appeal to global investors. Going forward, CCDC will continue to fulfil its role as the gateway to the China’s bond market. It will leverage its exclusive expertise and advantages as important platforms to deliver safe, convenient, professional and efficient services for global investors to navigate the China’s bond market.