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19th Asia Bond Markets Summit - China Edition
China's next act - retrofitting for tomorrow
27 June 2024 | 10:00 AM - 02:00 PM | Shenzhen
Overview

China’s economic recovery is on a shaky and uneven path. While the country posted a 5.2% GDP growth in 2023, which is in line with forecast, the reaction from investors and businesses has been rather muted.

No doubt the Covid-19 years have had an effect. The crackdown on the real estate sector and tightened tech regulation, arguably intended to redress the excesses that have emerged following turbo-charged expansion of the past many years, has slowed activity. Add to that is the ongoing trade tension with the US that has shifted supply chains and forced a rethink among the largest companies on the best way to manage geopolitical risks.

Indeed, confidence has been shaken. It is unlike the China that many have come to know of during the past decades of rapid growth. Instead, China is now facing the triple threat of deflation, de-risking, and deleveraging coming at the same time.

Global investors are standing aside from participating in the country’s capital markets. The stock and bond markets recorded outflows for most of the past two years. Predictions of a stronger turnaround have so far been proved wrong further dampening confidence. The elevated level of local government debt has not helped casting a dark cloud on what’s ahead.

Regulators have rolled out market-friendly reforms to facilitate investor access. For example, bonds traded via the Bond Connect scheme are now liquidity eligible, the Wealth Management Connect for the Greater Bay Area has been further enhanced, and the cross-border pilot programme for the digital yuan has also been expanded. Meanwhile, measures to revive the property sector have also been rolled out.

The monetary authority has cut interest rate to stimulate the economy. Local currency financing has become the preferred channel as many have switched out of the G3 bond market. China’s capital markets are vital to support the pressing needs of today and also its financing requirements in the coming years.

To be sure, amid the dark clouds there are silver linings. For example, China’s pivot to support the electric vehicle ecosystem has been an unqualified success. The country’s dominance in EVs has helped to catapult it to become the world’s largest car exporter in 2023. Commitment to renewable energy has passed a new milestone in 2023 as renewables such as wind, solar, hydro, and biomass energy surpassed thermal power for the first time and now accounts for half of the country’s installed power generation capacity.

The growing adoption of the Fourth Industrial Revolution technology from artificial intelligence to big data and 5G, is transforming commerce and industry. The prevalence of e-commerce, adoption of high-end manufacturing, rise of smart cities, and improved healthcare are critical to ensure the economy’s competitive advantage.

These complex challenges and emerging opportunities of what’s ahead make investing in China one of the most difficult balancing acts in the coming years. Sceptics are aplenty. But as the world’s second largest economy, China remains a market that is too big to ignore. With more measures underway in the coming months, will confidence return?

The Asset, is pleased to be hosting the 19th Asia Bond Markets Summit – China edition. Organized in association with the Asian Development Bank and Asian Infrastructure Investment Bank, the summit is the region’s longest-running fixed-income summit which brings together issuers, investors, policymakers and other stakeholders involved in Asia’s bond markets.

Agenda
27 June 2024
10:00 AM
Registration and coffee
10:30 AM
Opening remarks
Daniel Yu
Daniel Yu
editor-in-chief
The Asset
10:40 AM
Welcome remarks
Qiang Pan
Qiang Pan
vice president
ICBC Shenzhen Branch
10:50 AM
Panel one: China’s next act – retrofitting for tomorrow

China is facing an uncertain economic future. Investors remain cautious as the country faces mounting deflationary pressure. Ongoing geopolitical tensions is exacerbated by the West’s de-risking strategy. China’s deleveraging campaign, across the real estate sector and local governments, continue to threaten the revival of its economy. On the other hand, China’s push into the green, clean, and a digital future is accelerating at a fast clip.

  • Can China mount a reconfiguration of the drivers of its economic growth and restore investors’ confidence?
  • What measures are being launched to deal with the ongoing deflationary pressure?
  • How are policymakers positioning the capital market for recovery?
  • Which funding avenues are proving to be popular for issuers amid the current landscape?
  • Will the pivot to a green, clean, and digital future create opportunities for both issuers and investors?
Edmund Goh
Edmund Goh
head of fixed income - China
abdrn
Joyce Liang
Joyce Liang
managing director and head of Asia Pacific credit research
BofA Securities
Freddy Wong
Freddy Wong
head of Asia Pacific fixed income
Invesco
Ricco Zhang
Ricco Zhang
senior director, Asia Pacific
International Capital Market Association
Gong Cheng
Gong Cheng
chief credit officer
Moody’s Ratings
Daniel Yu (moderator)
Daniel Yu (moderator)
editor-in-chief
The Asset
11:50 AM
Keynote dialogue: China’s next act
Professor David Daokui Li
Professor David Daokui Li
director
Academic Center for Chinese Economic Practice and Thinking, Tsinghua University
Daniel Yu
Daniel Yu
editor-in-chief
The Asset
12:00 PM
Luncheon
01:30 PM
Panel two: What’s next for China’s bond market?

China’s bond market is slowly recovering from the record outflows that began at the end of 2021. As at March 2024, foreign holdings have recovered from the record low in August 2023 to reach nearly 4 trillion yuan. With its low correlation to bonds in the developed markets, 2023 was another year that saw Chinese bonds outperforming with a more than 4% return in local currency terms. In part, this is because China is on a different rate cycle versus the developed markets. Regulators continue to step in to improve market conditions and ensure stability. The panda bond market, in particular, is gaining ground, with landmark transactions including the first sovereign panda bond from Egypt. 

  • How are issuers viewing tapping the local currency bond market vis-a-vis going offshore?
  • Which sectors and theme will provide more opportunities?
  • What access channels are likely to be popular among foreign investors?
  • What are the new developments supporting China’s sustainable finance market?
Domenico Nardelli
Domenico Nardelli
treasurer
Asian Infrastructure Investment Bank
Alex Chen
Alex Chen
head of overseas client department
China Central Depository & Clearing
Lei Zhu
Lei Zhu
head of Asian fixed income
Fidelity International
Terry Gao
Terry Gao
CEO
Lianhe Global
Sean Chang
Sean Chang
co-chief investment officer - fixed income
Value Partners
Darryl Yu (moderator)
Darryl Yu (moderator)
managing editor
The Asset
02:30 PM
How commercial banks can contribute to the development of China’s bond markets
Yabing Hu
Yabing Hu
senior expert of global markets department
Industrial and Commercial Bank of China
02:40 PM
Panel three: China’s next gamechanger

China’s exchange-traded fund (ETF) market is booming. Investors, led by sovereign funds, are increasingly betting on ETFs as active funds continue to underperform. Meanwhile, the government is promoting ETFs as a fundraising vehicle in priority sectors such as green energy. ETFs focusing on sustainability are becoming increasingly popular while fixed income ETFs are gaining ground as interest rates continue to soar. How will China’s ETF market evolve in the next 12 months?

  • What are the drivers for the rapid growth of ETFs in China?
  • How do investors build their portfolios with ETFs?
  • What themes are currently popular in this space?
  • What do asset managers consider when building fixed income ETFs?
Zhen Wei
Zhen Wei
managing director
Bosera Asset Management
Jiacheng Mei
Jiacheng Mei
senior vice president, FICC
CITIC Securities
Cassandra Cheng
Cassandra Cheng
head of rates derivatives, North Asia
Singapore Exchange
Janette Chen (moderator)
Janette Chen (moderator)
senior analyst, head of Greater China
The Asset
03:10 PM
Networking and coffee
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