The China Debt Capital Markets Summit 2018 was held this Wednesday in Beijing.
The summit reviewed China's opening-up process with regards to its debt capital markets and discussed how to address the challenges foreign investors encountered with China's bond markets.
As of the 2017 year end, the balance of China's bond markets had reached 75 trillion yuan, ranked third place in the world's debt capital markets, just after the US and Japan.
One of the biggest concerns for foreign investors is the liquidity of the Chinese bonds, which means achieving a better price in the fastest way possible when investing and selling the bonds.
The repos and transaction volume of Chinese bonds has exceeded 700 trillion yuan each year, and the daily transaction of Chinese bonds was ranging between 400 billion yuan and 500 billion yuan with the volume of repos between two and three trillion yuan.
Gao Fei, a senior official from the People's Bank of China, noted that although the absolute figures of the Chinese bonds transactions and repos were large, China still has a low liquidity in comparison with the 15,000 to 20,000 bonds in the Chinese markets.
The participation of foreign investors in the Chinese capital markets will inevitably diversify Chinese markets as well as inject vitality into China's bond markets.
There is still room for improvement in the infrastructure of the Chinese bond markets and the diversification of their investors, said Gao, China strives to make the Chinese debt capital markets more market-oriented.
The Bank of China will continue to work on the regulations for repos and derivatives, and building up a sound infrastructure in the debt markets, as well as the related taxation rules to facilitate investments from overseas.
The summit reviewed China's opening-up process with regards to its debt capital markets and discussed how to address the challenges foreign investors encountered with China's bond markets.
As of the 2017 year end, the balance of China's bond markets had reached 75 trillion yuan, ranked third place in the world's debt capital markets, just after the US and Japan.
One of the biggest concerns for foreign investors is the liquidity of the Chinese bonds, which means achieving a better price in the fastest way possible when investing and selling the bonds.
The repos and transaction volume of Chinese bonds has exceeded 700 trillion yuan each year, and the daily transaction of Chinese bonds was ranging between 400 billion yuan and 500 billion yuan with the volume of repos between two and three trillion yuan.
Gao Fei, a senior official from the People's Bank of China, noted that although the absolute figures of the Chinese bonds transactions and repos were large, China still has a low liquidity in comparison with the 15,000 to 20,000 bonds in the Chinese markets.
The participation of foreign investors in the Chinese capital markets will inevitably diversify Chinese markets as well as inject vitality into China's bond markets.
There is still room for improvement in the infrastructure of the Chinese bond markets and the diversification of their investors, said Gao, China strives to make the Chinese debt capital markets more market-oriented.
The Bank of China will continue to work on the regulations for repos and derivatives, and building up a sound infrastructure in the debt markets, as well as the related taxation rules to facilitate investments from overseas.
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