Asia is changing amid rapid urbanization and expanding domestic markets. This is creating a need to broaden and deepen bond markets to help finance corporate expansion and new infrastructure necessary to sustain the region’s growth.
China’s US$5.2 trillion debt market is now the world’s third largest, trailing the US and Japan. Capital market reforms are speeding up the development of the country’s onshore bond market. Improved liquidity on the back of government easing measures is attracting Chinese corporates to return to onshore bonds. China also has widened foreign investors’ access to the local interbank bond market. As Beijing further liberalizes its capital markets, will renminbi-denominated bonds account for a significant share in the global fixed income asset allocation?
The Asian Bond Markets Summit, which celebrates its 10th anniversary this year, brings together participants from all over Asia including institutional investors, private banks, financial institutions, issuers and policy makers to discuss and debate the key themes and opportunities in the region's bond markets.
08:30 Welcome remarks
Noritaka Akamatsu, Senior Advisor, Sustainable Development & Climate Change Department, Asian Development Bank
08:50 Opening keynote address
09:10 Morning keynote address
09:30 Panel: Asia’s transformation and the role of bond markets
Underpinning Asia’s progress and transformation is the development of the region’s bond markets. Asian governments and companies are increasingly relying on the capital markets for funding. To fuel the next stage of the region’s economic growth, Asia must develop its bond markets further. What are the issues surrounding the growth of Asia’s bond markets?
10:00 Networking and coffee
10:30 In conversation: The return of the panda bonds
Foreign interest is building in China’s panda bond market as monetary easing from Chinese regulators is throwing up new opportunities for foreign issuers to enter China. How can issuers in the region benefit from the easing of restrictions in China?
10:50 Panel: Going green in Asia
Asian issuers, policymakers and investment bankers are showing increasing interest in green bonds. However, green bond issuances remain an investment-grade driven market. What can be done to boost demand for green bonds?
11:30 In conversation: The emergence of municipal bonds in Asia
Municipal bonds are relatively new in Asia, but there are pockets within the region where muni bond issuance is thriving. In China, mounting local government debt has pushed the finance ministry to allow local governments to swap their high-interest debts for lower-cost bonds. In India, the government is pinning its hopes on municipal bonds to finance infrastructure projects. The Indian government recently finalized the issuance and listing guidelines for muni bonds. Despite these developments, issues surrounding corporate governance, transparency and market risks related to municipal bond issuances remain. What’s in store for muni bonds in Asia?
13:00 Afternoon keynote address
Dr. Gao Jian, founder of government securities market and former Executive Vice Governor, China Development Bank
13:20 In focus: IFC initiatives to support the capital market development in China
This session gives an overview of the Asian capital markets and the innovative reforms introduced by IFC to further strengthen the capital markets. How is China looking to deepen its capital markets and what role is IFC playing as a regulator in the China’s capital market deepening reforms? Andrew Cross, Deputy Treasurer Asia & Pacific, IFC
13:40 In focus: China and the global benchmarks – When it happens
As the Chinese regulators further opens the its markets to foreign investors, China is expected to be eligible for inclusion in global benchmarks. What will this mean to global investors and how should they prepare for the China’s eventual inclusion?
14:10 Panel: Are Chinese corporate bonds set to take off?
With the US dollar market volatility, excess onshore liquidity and relaxed rules for corporate bond issuances, Chinese corporates are increasingly tapping the onshore bond market to fund ventures and expansion. Moreover, investors seeking high yield on investments are turning to China’s bond market. Amid increasing demand, are we going to see a boom in Chinese corporate bond issuances?
14:40 In focus: Of ratings high and low
Investors rely on global rating agencies and their in-depth research in making investment decisions. In China, the emergence of a number of domestic credit rating establishments is a phenomenon. But the different rating methodologies and a lack of transparency in some of these establishments are eroding the confidence of investors in the credit rating sector. Should we expect a consolidation in China’s credit rating industry?
15:10 Panel: China securitization
Increased transparency and investment-grade quality of some of China’s securitized products have made such assets appealing to investors. What can Asia learn from China’s securitization boom?
15:40 Panel: What’s next for Asia’s bond markets?
The sell-off in the emerging equity markets in 2015 has spread to the debt markets. Investors need to be extra vigilant to be able to navigate the choppy markets. With the dislocation comes both risks and opportunities. How have the events of the past 12 months impacted markets?
16:20 Closing remarks
Daniel Yu, editor-in-chief, The Asset
16:30 End of summit & cocktails
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