Overview Agenda
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18th Asia Bond Markets Summit - China Edition
Discovering value in dislocated markets
20 September 2023 | 03:00 PM - 05:50 PM
Overview

The interest rate hikes of the past 18 months have turned the tide in fixed income investing. Investors are now being rewarded after years of low to nil returns of the past decade underpinning the beginnings of a bull run that began at the end of 2022. As the rate hike cycle peaks, the case for fixed income investing has never been better.

Investor confidence, however, remains fragile. A new era of elevated volatility is here to stay. At the same time, the global economic outlook for the coming 12 months remains uncertain. Talk of recession in the West has somewhat been muted in recent months. On the other hand, yield curve inversion has historically always been a harbinger of slower times ahead.

The strength of the US dollar and decent yields on Treasuries have sucked in flows out of the emerging markets including from Asia last year. Credit issues especially in China’s real estate sector accelerated the exit of funds from this region. But early indications are that the coming 12 months are likely to be materially different from the last as the search for yield returns to the emerging markets.

Asia’s solid fundamentals mean that this region is expected to spearhead a global recovery. While China has failed to restore investors’ confidence for much of the past 18 months, policymakers are starting to act more vigorously to deteriorating sentiment. As the world’s second largest economy, it is simply too big to ignore. The skill is to be able to navigate complex crosscurrents that muddy the water to discover value in dislocated markets.

Indeed, Chinese bonds, already included in major global bond indices, have become an important fixture for global investment portfolios. However, a divergence in China’s monetary policies from that of other major economies as well as lack of liquidity are keeping foreign investors at bay. As a means for diversification, however, Chinese bonds, have proved their worth.

China is also accelerating its green transition and its dual carbon goal is at the forefront of this strategy. The green finance market will play an even bigger role as China works towards its net-zero commitments. The introduction of transition bonds is expected to support the decarbonization journey of China’s high-emitting industries. However, transparency and greenwashing are still major concerns for investors who are hoping to see alignments with international practice, and greater transparency.

It is interesting times and set the stage for The Asset Events, which is pleased to be hosting the 18th Asia Bond Markets Summit – Greater China edition. As the longest-running fixed-income conference of its kind, the summit brings together issuers, investors, policymakers and other stakeholders involved in Asia’s bond markets to discuss the issues, challenges and opportunities in fixed income markets in Greater China.

Agenda
20 September 2023
03:00 PM
Registration and coffee
03:40 PM
Welcome remarks
03:50 PM
Panel one: Seeking opportunities in an era of transition

China is working to get its economy back on track, launching reforms aimed at improving financial supervision and targeting financial stability. This development offers both opportunities and challenges to borrowers and investors. Central to this reform is the fate of local government financing vehicles (LGFVs) and that of the battered property sector. Moreover, China’s oversized position in global bond indices is causing concern for global investors on the back of poor performance of Chinese corporate bonds.

  • Which investment themes will prove to be the most compelling?
  • Where is the LGFV sector headed?
  • How will the property sector shape up over the next 12 months?
  • How do investors approach China asset allocation vis-à-vis diversification?
Satoru Yamadera
Satoru Yamadera
advisor, economic research and regional cooperation department
Asian Development Bank
Gary Lau
Gary Lau
managing director
Moody’s Investor Services
Elle Hu
Elle Hu
executive director of credit ratings
China Chengxin (Asia Pacific) Credit Ratings Company
Judy Kwok
Judy Kwok
head of Greater China fixed income research
Manulife Investment Management
Daniel Yu (moderator)
Daniel Yu (moderator)
editor-in-chief
The Asset
04:40 PM
Networking and coffee
05:10 PM
Panel two: What's next for sustainable finance

China’s road to carbon neutrality is on track and its green, social and sustainability-linked (GSS) bond market plays a key role in meeting this goal. Green bond issuance remains the major contributor in this space as regulators work towards eliminating greenwashing and adopting international standards.Hong Kong, meanwhile, remains an important sustainable financing center in Asia, launching initiatives such as green bond tokenization and carbon trading. The entry of transition bonds will aid in decarbonThe entry of transition bonds will aid in decarbonizing carbon-intensive industries. The lack of greenium, however, could mute investor interest.izing carbon-intensive industries. The lack of greenium, however, could mute investor interest.

  • Where will issuance come from?
  • Which sectors and industries could benefit from these developments?
  • What challenges do borrowers face?
  • How do investors navigate the China’s GSS+ bond market?
Rocky Tung
Rocky Tung
director & head of policy research
Financial Services Development Council
Nana Li
Nana Li
head of sustainability & stewardship, Asia-Pacific
Impax Asset Management
Alexander Chan
Alexander Chan
head of ESG client strategies, Asia Pacific
Invesco
Yifan Hui
Yifan Hui
regional chief investment officer & head macroeconomics APAC
UBS Global Wealth Management
Chito Santiago (moderator)
Chito Santiago (moderator)
executive editor
The Asset
06:00 PM
Networking and cocktails
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Event Photos
Registration time at the event
Registration time at the event
Full house audience during the event
Full house audience during the event
Panel one on Seeking opportunities in an era of transition
Panel one on Seeking opportunities in an era of transition
Coffee and networking during the break
Coffee and networking during the break
Coffee and networking during the break
Coffee and networking during the break
Panel 2 on What's next for sustainable finance
Panel 2 on What's next for sustainable finance