The 10th Asian Bond Market Summit Beijing

Date: 20 Jan 2016
Location: The Westin Beijing Financial Street, Beijing, China

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.

07:30 Registration

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?

  • The impact of higher US interest rates on Asian bonds
  • Financing infrastructure through bonds
  • The search for liquidity
  • The opening up of China’s bond market
    • Geoffrey Lunt, Director, Senior Product Specialist for Asian Fixed Income, HSBC Global Asset Management
    • Vijay Chander, Executive Director, Fixed Income, Asia Securities Industry & Financial Markets Association
  • Moderator: Daniel Yu, editor-in-chief, The Asset

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?

  • Onshore vs offshore yields – how critical is this to foreign issuances in China?
  • What does this mean to the offshore market’s viability?
  • Accounting Standards: Is Chinese GAAP a challenge for foreign corporates?
  • Outlook: Will more issuances follow?
  • Moderator: Daniel Yu, editor-in-chief, The Asset

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?

  • How can the market expand beyond blue-chip issuers?
  • The cost of issuance: Is it worth it?
  • Standards: Is there a need for a template for green bonds?
  • How do we broaden the investor base to consider high-yield issuers?
    • Mushtaq Kapasi, Chief Representative, Asia Pacific, International Capital Market Association
    • Yoshiyuki Arima, Lead Financial Officer and Representative, Japan, Capital Markets Department, World Bank
  • Moderator: Darryl Yu, Editorial Analyst, The Asset

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?

  • How can local governments increase investor confidence in muni bonds?
  • Transparency and disclosure standards: What must be done?
  • Ratings: local vs international rating methodology
  • Is there enough investor demand to meet an increase in government bond supply?
    • Lynnette Kelly, Executive Director, Municipal Securities Rulemaking Board
    • Kim Eng Tan, Senior Director, Sovereign and International Public Finance Ratings, Asia Pacific, Standard and Poor’s Ratings Services
  • Moderator: Chito Santiago, managing editor, The Asset

12:00 Luncheon

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?

  • Eddie Pong, Director, Research & Analytics, FTSE Russell

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?

  • How to encourage more corporate issuers to tap the domestic markets
  • Improving transparency on rating methodology
  • How critical is fundamental credit selection in China’s high-yield market?
  • Have recent defaults led to new deal structures in terms of investor protection?
    • Fu Qiang, VP, Shanghai Lujiazui International Financial Asset Exchange
    • Patrick Song, Portfolio manager, CSOP Asset Management
    • Senior representative, Sinopec Securities
    • Jin Zhou, Managing Director, Head of Fixed Income, Orient Finance Holdings
  • Moderator: Chito Santiago, managing editor, The Asset

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?

  • Zhenyu Li, Vice-president, Chief Research Officer, China Lianhe Credit Rating

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?

  • Why and when does securitization make more sense?
  • Securitization and its role of channelling finance to underfunded areas
  • Tax and legal structure
    • Liu Borong, Chairman of the Executive Committee, China Securitization Forum
    • Jichuan Yang, CEO, Hfax.com, Sunshine Group
    • Nian Shi, Senior Managing Director and Head of Asset-Backed Securities, Desheng Capital Investment Management
  • Moderator: Tina Wang, Editorial Analyst, The Asset

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?

  • When will volatility ease?
  • What will be the impact on new issuance activity?
  • Will China continue to dominate bond market activities in Asia?
  • What considerations will come into play in the onshore/offshore debate?
  • Should leverage be a concern given the slowdown?
    • Sean Chang, Head of Fixed Income, Asia, Baring Asset Management
    • Pheona Tsang, Head of Fixed Income, BEA Union Investment Management
  • Moderator: Daniel Yu, Editor-in-Chief, The Asset

16:20 Closing remarks

Daniel Yu, editor-in-chief, The Asset

16:30 End of summit & cocktails

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