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Open up a New Horizon by Solid Work and Everlasting Reforms——SZSE Holds Bond Market Regulation and Development Symposium

Date: 2019-01-28

On January 22, 2019, SZSE held a bond market regulation and development symposium to discuss the work plan for the bond market in 2019 to further implement the CSRC's decisions and better serve the real economy and national strategies. The symposium was attended by representatives from institutions like the Ministry of Finance, relevant departments (bureaus) of finance, the CSRC and its agencies, corporate bond issuers, banks, securities institutions, insurance companies and asset management organizations.

 

At the symposium, SZSE reviewed the bond market development and construction in 2018 and the attendees held in-depth discussions on municipal bond issue and market construction, high-grade bond market construction, corporate bond examination, issue and duration management, and asset securitization innovation and development. The SZSE bond market gained recognition for its vigorous efforts and great achievements in serving the real economy, preventing and controlling market risks, deepening market reforms and boosting healthy and stable market development over the past year. Measures taken by SZSE include the following: First, encouraging the issue of bailout bonds and credit protection instruments, so as to cater to the financing needs of small and micro businesses by supply chain financial assets securitization and create a favorable financing environment for private startups in a market-oriented way. Second, enhancing basic systems and improving regulatory transparency. We implement a well-established issuer system which features categorized examinations and simpler procedures and adopts a one-stop electronic platform of issue and public offering that improves the examination and service efficiency. Meanwhile, we follow higher standards on disclosure and transparency to ensure a prompt and effective access to market information for investors and protect their legal rights and interests. Third, providing efficient services for local bonds, promoting regular issue of policy-oriented financial bonds and encouraging the return of railway bonds to the market, so as to ensure the supply of diversified high-grade bond varieties. Fourth, improving the trading systems. We introduce pledged bond repos and extend the trading duration to boost liquidity in the secondary market.

 

The attending representatives pointed out that the SZSE bond market has transmitted from the rapid growth stage to the high-quality development stage highlighting "faster growth and higher quality". SZSE will take the suggestions from all attendees to advance the reform to delegate power, streamline administration and optimize government services and do a good job in fundamental constructions in favor of healthy and stable market development by uniting forces of all parties. Such fundamental work includes constantly improving high-grade bond issue services, enhancing the legal basis for asset securitization, promoting the supply of innovative products, optimizing disclosure rules and systems, strengthening product duration management and risk disposition, and intensifying market training and guiding. At the same time, SZSE will promptly respond to market concerns and do the utmost to satisfy market needs. We will deepen market reforms and innovation and strive to make further breakthroughs by pushing forward formulation of public REIT rules and pilot projects.

 

In the coming year, SZSE will earnestly carry out the spirit of President Xi Jinping's significant speech on the Central Economic Work Conference and remain steadfast in deepening the SZSE bond market reforms to increase the risk prevention and control capabilities, improve the weakness and give full play to the functions and advantages of the bond market in serving the real economy. SZSE will make efforts in the following three aspects: First, giving top priority to the prevention and control of financial risks to enhance risk pre-analysis and prediction capabilities, constantly improve risk responses and do a good job in risk prevention and control. Second, moving forward on both interest bonds and credit bonds and constantly improving high-grade bond (such as local bonds) issue services to better serve the quality development of the real economy. Third, improving SZSE secondary market mechanisms and stimulating fixed income instrument innovation to enrich the offerings in the market, increase market vitality and enhance information disclosure and market transparency to boost the robust development of SZSE bond market.

In the coming year, SZSE will earnestly carry out the spirit of President Xi Jinping's significant speech on the Central Economic Work Conference and remain steadfast in deepening the SZSE bond market reforms to increase the risk prevention and control capabilities, improve the weakness and give full play to the functions and advantages of the bond market in serving the real economy.