The HSBC 2nd Annual Asia Credit Conference organized by HSBC was held on 12-13 June 2018. The Conference covered various hot issues including Asian high yield bond market, analysis of Chinese real estate industry, cross-border transaction, risk management and influences of “Belt and Road” and Greater Bay Area strategies with participation from more than hundreds of domestic and overseas investors. The onshore and offshore bond market of RMB was one of the hot topics and CCX was the only Chinese rating agency being invited to the round table discussion “China’s Bond Markets: Climbing the Great Wall”.
Ms. Ariel Yang, the Vice President of CCXI and Executive Director & CEO of CCXAP, was being invited as the one of the panelist. Other panelists including Ms. Bonnie Chan, Panda Bond Specialist of Shenzhen Stock Exchange, Mr. Eric Liu, Senior Director, of Fixed Income and Portfolio Manager of Manulife Asset Management, Mr. Timothy Yip, Head of Debt Capital Marketsof HSBC Qianhai Securities Limited and Ms. Ivy Zhang, Managing Director and Head of Fixed Income Trading of Global Markets from HSBC (China) Company Limited were joined together and held discussion on different topics, including the key differences and trends of China’s two bonds market – exchange and interbank markets; development, achievements and challenges of Panda bond development, as well as how bond connect is revolutionizing access to the onshore markets.
The interaction from participants was positive. International investors raised out various enquires on China bond market, including differences with European and American markets, highest classification of bonds, trends of default and etc. Ms. Yang answered all enquires and introduced the characteristics and special structure of China bond market, rating industry under regulations, understanding on reasons behind highest classification of bonds, as well as ratings system of CCX which include local and global scales that aims to provide general credit analysis to issuers with concrete examples on Chinse-US dollar bond and Panda Bond. Ms. Yang advised investor not only focus on the rating results but focus on rating reports content as well as the revelation and warning of each rating action. Mr. Eric Liu agreed with Ms. Yang’s advice and pointed out that they also study rating reports not only from the big three but also the Chinese rating agencies when investment on bonds issued by Chinese issuers are involved.
Currently more that 70% of Panda Bonds public issued in the Inter-Bank Market were all rated by China Chengxin International Credit Rating Company Limited (“CCXI”), including but not limited to the first Panda Bond issued by HSBC Ltd., the first non-financial institutions Panda Bond issued by China Merchants (Hong Kong) Ltd., the first sovereign Panda Bond issued by the Republic of Korea, the first issue of Panda Bond by French issuer Veolia Environment, the first EU sovereign Panda Bond issued by The Republic of Poland and etc. All these examples confirmed that the ratings concepts and methods of CCXI are recognized by issuers, regulators and investors.
China Chengxin (Asia Pacific) Credit Ratings Company Limited (“CCXAP”) received a Type 10 License (Providing Credit Rating Services) from the SFC and is the first Chinese credit rating company from the Mainland operating in the international market. In recent years CCXAP is actively in expanding the overseas market with extensive client base covered over 20 industries. CCXAP aims to provide professional services and contribution to Chinese cross-border financing and financial connection along the Belt and Road.