Newsletter - December 2018
In this month’s newsletter:
New Stakeholders SBAI in Shanghai A year in review - Summary of 2018 – celebrating 10 years What’s next? Upcoming events in 2019 SBAI’s new address
New Stakeholders
We are pleased to welcome new additions to the SBAI family:
Investor Chapter
• Fire & Police Pension Association of Colorado (US) • Noah Holdings (Hong Kong) Limited
Signatories
• Wellington Management Company, LLP (US) • Noah Holdings (Hong Kong) Limited
SBAI in Shanghai
The SBAI co-hosted a joint event in Shanghai with the Allocate to China (ATC) initiative. The panellists from Aberdeen Standard Investments Asia, Aijian Securities, Capital Corise, HSBC, Jasper Capital, Lujiazui Financial City, Orchard Global Asset Management, Rosefinch, Simmons & Simmons, Springs Capital and Wind Information focused on China’s fixed income and bond markets, big data and artificial intelligence, as well as the activities of the SBAI's China Working Group. Key areas covered:
The Fixed Income panel discussion focussed on the status of Chinese FI/credit markets
For international investors there are four major channels to access China onshore bond market: (1) Qualified Foreign Institutional Investors (QFII) programme that allows specified licensed international investors to participate in mainland China A-shares, bonds, index futures, etc.; (2) R-QFII facilitates foreign investment in the mainland via offshore renminbi accounts; (3) China
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Interbank Bond Market (CIBM) Direct (trading through licensed banks); and (4) Bond Connect (connecting Hong Kong and Mainland China financial institutions) Current challenges include lack of international credit rating agencies, derivatives instruments for hedging and lack of repo facilities for leverage Inclusion in global benchmarks will drive better understanding of China Fixed Income among global investors Developments in the high-yield market, including launched the China’s first market-based high- yield bond index (CCDC Aijian High-yield Bond Index)
The Fixed Income panel discussion focussed on the status of Chinese FI/credit markets For international investors there are four major channels to access China onshore bond market: (1) Qualified Foreign Institutional Investors (QFII) programme that allows specified licensed international investors to participate in mainland China A-shares, bonds, index futures, etc.; (2) R-QFII facilitates foreign investment in the mainland via offshore renminbi accounts; (3) China Interbank Bond Market (CIBM) Direct (trading through licensed banks); and (4) Bond Connect (connecting Hong Kong and Mainland China financial institutions) Current challenges include lack of international credit rating agencies, derivatives instruments for hedging and lack of repo facilities for leverage Inclusion in global benchmarks will drive better understanding of China Fixed Income among global investors Developments in the high-yield market, including launched the China’s first market-based high-yield bond index (CCDC Aijian High-yield Bond Index)
The SBAI would like to thank all the panellists for their contribution to the discussion. A special thank you goes to Wind Information for hosting the event.
A year in review - Summary of 2018 – celebrating 10 years
It has been another eventful and ground-breaking year for the SBAI in a number of areas, including content development, standard-setting, global events and stakeholder and regulatory interaction. In 2018, the Standards Board also celebrated its 10th anniversary.
Governance and Committees
In March, the Standards Board created its North American Committee to direct its efforts in the region, including identifying local issues for inclusion in the SBAI’s studies and working groups, supporting the SBAI’s North American roundtables, communicating with