On January 7, SZSE held the 2019 Bond Market Regulation Symposium. At the Symposium, SZSE focused on the full implementation of the guiding principles of the Central Economic Work Conference and reviewed the development of bond market in 2019. It also studied and made arrangements for the priorities of the bond market in 2020 to better serve the real economy and the building of the Guangdong-Hong Kong-Macao Greater Bay Area and the Pilot Demonstration Area of Socialism with Chinese Characteristics. The Symposium was attended by representatives from institutions including the Ministry of Finance, departments or bureaus of finance at the provincial level and of the autonomous regions or at the municipal level, the CSRC and its local offices, fixed income product issuers, banks, securities institutions, insurance companies and fund companies.

Attendees were informed of the development of the SZSE bond market in 2019. In 2019, SZSE kept its mission of serving the real economy firmly in mind and firmly hold the bottom line of zero systemic financial risks. Moreover, SZSE also advanced the reform and expanded the access to direct financing, characterizing the growing size of the bond market and improved quality. The annual launch of fixed income products exceeded CNY1.7 trillion, representing an increase of 20.4% over the same period of last year. First, SZSE improved its system of fixed income products and consolidate the structure based on the interest rate bonds and credit bonds. It has already achieved full coverage on the local municipal bonds. The financial bonds of the Export-Import Bank of China were issued on SZSE for the first time, which means that all policy banks have issued financial bonds on SZSE. Second, SZSE accelerated the opening-up and innovation, and took the initiative to follow national strategies. For example, it launched the first batch of special municipal bonds and corporate bonds for the building of the Guangdong-Hong Kong-Macao Greater Bay Area, the first Panda Exchangeable Bond, the first securitization product of intellectual property rights on the market. All of these initiatives provided more new ways of financing for innovative private enterprises and allowed more channels for the capital market to serve the real economy. Third, SZSE consolidated the system of forestalling and defusing financial risks and intensified efforts in risk monitoring and inspecting. It also developed the policy to adjust the dual-trading mode for bonds publicly issued to the single trading mode, and the transfer service mechanism for high-risk and defaulted bonds, and improved the rules for clearing and disposing of bond risks to ensure the smooth operation of the bond market.

At the Symposium, in-depth discussions on many topics including boosting liquidity of interest rate bonds and innovating credit bonds were carried out, specifically: responding to requirements of the PBOC, the Ministry of Finance and CSRC on promoting the development of interest rate bond ETFs and actively supporting the launch of interest rate bond ETFs; further diversifying investor types and improving investor structure; boosting liquidity of interest rate bonds, involving more market players and deepening the development of local municipal bonds; promoting the innovation of credit bonds, expanding the coverage of quasi-REITs and securitization products of intellectual property rights and enriching SZSE-listed products; strengthening capabilities in supporting technology innovation and serving the real economy. SZSE will fully consider all comments and suggestions and continue to make solid progress in boosting healthy and stable market development in the light of “the four awes (stand in awe of the market, rule of law, professionalism and risks) and one joint force (The capital market’s development needs all the efforts made by all sides)”.

SZSE stressed at the Symposium that it would stick to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its guiding principle, learn and implement the new Securities Law. It will pursue a new development philosophy, enhance risk prevention and control capability, launch more new products, improve basic policies and its services in accordance with the overall plan of CSRC for deepening sweeping reforms of the capital market. First, SZSE will improve its capability in forestalling and defusing market risks. It will strengthen product duration supervision, urge market players to perform their duties and perfect the risk prevention mechanism with issuers and trustees as the core. Second, SZSE will improve its bond trading rules and technology platform, boost liquidity in the secondary market and further improve the adaptability of infrastructure. Third, SZSE will make positive contribution to the building of the Guangdong-Hong Kong-Macao Greater Bay Area and the Pilot Demonstration Area of Socialism with Chinese Characteristics. It will make sustained efforts to build the platform for the bond market in the Greater Bay Area and practical efforts to the high-level opening-up of SZSE bond market. Fourth, SZSE will continue to develop new fixed income products, lower financing costs and support technology innovation, private companies and SMEs. It will prepare for the trial of mutual REITs and cultivate maturity models for securitization of intellectual property rights. SZSE will strive to build a bond market system adapt to the Pilot Demonstration Area of Socialism with Chinese Characteristics and build a more well-adapted, competitive and inclusive modern financial system.