The 11th Asian Bond Markets Summit

Date: 18 May 2017
Location: Grand Kempinski Hotel Shanghai, China

More than a year following China’s decision to widen foreign investors’ access to its interbank bond market, things are starting to fall into place. China’s inclusion in the Emerging Markets Government Bond Index and such other indices as the Asian Government Bond Index and the Asia-Pacific Government Bond Index is a positive development that promises more foreign inflows.

In the G3 market, Chinese issuers account for the lion’s share of primary activity as local government financing vehicles join government and private corporates in issuing bonds. Chinese issuers now account for up to 60% of the total market activity worth over US$200 billion a year. Analysts expect more Chinese issuers will debut in the international market in the next few years.

China’s activity in both the onshore and offshore bond markets reflect the country’s rising stature in the global financial markets. There is increasing interest in China’s bond markets among foreign investors. For now, foreign investment accounts for less than 2% of China’s US$9.5 trillion onshore bond market. An understanding of Chinese issuers and the onshore market is vital for any global fixed income manager planning to invest in China. While opportunities abound, the challenges around investing in the country often are quite complex. The weakening of the renminbi, concerns around credit ratings, recent corporate defaults and a general lack of clarity about the inner workings of the onshore bond market have slowed efforts of global investors to access China’s debt market.

Now on its 11th year, the Asian Bond Markets Summit is the definitive fixed income event in Asia that draws the largest participation of issuers and institutional investors. Organized in association with the Asian Development Bank, the Asian Bond Markets Summit is a part of Asean Bond Markets Initiative especially in deepening the development of Asia’s bond markets.

Speakers / Agenda

08.00 Registration

09.00 Opening remarks

Daniel Yu, Editor-in-Chief, The Asset

09.10 Morning keynote address

Noritaka Akamatsu, senior advisor of sustainable development & climate change department, Asian Development Bank

09.30 Panel: Open access – Overcoming challenges, unlocking opportunities

The China Interbank Bond Market (CIBM) scheme that provides foreign investors direct access to China’s onshore bond market is shaping the global investment landscape. But concerns around credit ratings, defaults, and the weakening renminbi are making it difficult for global investors to access the CIBM.

  • How can China boost foreign investor participation in its markets?
  • What does CIBM really mean for foreign investors?
  • What initiatives are being done to increase transparency and credibility of mainland ratings?
  • How will inclusion of onshore bonds in global indices impact the market?
  • RMB inclusion in IMF’s Special Drawing Rights basket (SDR) and how this might impact investors’ view of RMB
    • Eddie Pong, director, research & analytics, FTSE Russell
    • He Jie, deputy general manager, treasury department, Hong Kong branch, China Development Bank
    • Henry Hung, head of international ratings business, China, Fitch Ratings
    • Luo Feng, general manager, department of financial markets, China, Zheshang Bank
    • Julien Martin, head of fixed income and currency, Hong Kong Exchanges
    • Senior representative, Sinopac Securities
    • Senior representative, China Zheshang Bank
    • Daniel Yu, Editor-in-Chief, The Asset
10.10 Networking and coffee

10.40 Panel: The black and white of panda bonds

The revival of the panda bond market, fuelled by the opening of the CIBM, promises to give foreign issuers access to renminbi-denominated assets. However, regulatory uncertainties and a general lack of clarity on rules have slowed activity. What must be done to shake the pandas out of their stupor?

  • Leslie Maasdorp, chief financial officer, New Development Bank
  • Ni Nie, research director, China Lianhe Credit Rating
  • Ricco Zhang, director, Asia Pacific, International Capital Market Association
  • Karen Li, managing director, head of Hong Kong office, Rusal
  • Chito Santiago, managing editor, The Asset

11.20 Panel: The rise of LGFV bonds

Local governments with massive funding requirements are increasingly tapping the international capital market and are driving the growth of the LGFV bond market. This trend is likely to continue as the central government eases rules and encourages offshore issuance. Despite relatively higher yields offered by LGFV bonds, Chinese investors remain the major buyers.

  • How can LGFVs be more attractive to offshore investors?
  • What initiatives are being done to increase data transparency?
  • The issue of ratings
  • Defaults and keepwell agreement: Where are we?
    • Ni Nie, research director, China Lianhe Credit Rating
    • Sean Chang, head of Asian debt investment, Baring Asset Management
    • Daniel Yu, Editor-in-Chief, The Asset

12.00 Luncheon

14.00 Afternoon keynote address

14.20 In conversation: China Belt & Road – how Asia’s bond markets can support?

China’s Belt and Road Initiative has a long list of projects that require massive funding. The bond markets are a potential source of funds for infrastructure projects that should  deepen ties between China and trading partners in Asia, the Middle East and Europe. How can the Asian bond markets support China’s Belt and Road journey?

15.00 In focus: The China securitization market

China’s securitization market is getting a major boost as regulators push for alternative funding tools. Asset-backed securities (ABS), residential mortgage-backed securities (RMBS) as well as collateral loan obligations (CLOs) are common financial securities in China. Going forward, the securitization market is poised for growth as deals involving non-performing loans increase and rules around Public Private Partnerships (PPP) are relaxed. China is allowing PPP project proponents to tap the securitization market to raise capital. How will the market evolve in the next 12 months?

  • Tang Lingyun, vice general manager global market department, ICBC

15.20 Panel: Green bonds – China leading the way

Across the globe, climate change is high on the government agenda. State policy supporting environment-friendly projects are helping to fuel the growth of the green bond market.

Last year, China led the green bond issuance in Asia Pacific. With China’s firm commitment to green finance, the country is expected to retain its spot as the biggest green bond issuer this year. Across Asia, countries including

Indonesia, the Philippines and South Korea are also active in the green bond market.

  • Climate certification: When is a bond considered green?
  • How do we ensure effective information disclosure?
  • The green investor network: Attracting both domestic and international investors
  • Ratings for green bonds
    • Yao Wang, deputy secretary general, Green Finance Committee, China Society for Finance and Banking
    • Qi Jiuhong, director of R&D department, China Beijing Environment Exchange
    • Virgil Nae, head of representative office for China, European Investment Bank
    • William Beloe, principal financial officer, climate finance lead, Asia, International Finance Corporation
    • Wei Liu, deputy director of bond markets, Shanghai Stock Exchange
    • Darryl Yu, assistant editor, The Asset

16.00 Closing remarks

Daniel Yu, Editor-in-Chief, The Asset

17.00 End of summit & cocktails

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