After its first stop in Geneva, Bloomberg hosted more than 400 market participants in its latest “China: Navigate the New Silk Road” investor roadshow event in Hong Kong last week. Held over two days and spanning fixed income and equities investing, the forum tackled the critical opportunities and challenges in China that continues to take steps in liberalizing its capital markets.
The spotlight at the forum was on China’s vast bond market now valued at over US$9 trillion, its market opportunities and long-term growth story. Hong Kong’s portfolio managers, traders and analysts heard from Citigroup’s Chief China Economist Dr. Li-Gang Liu about China’s capital market opening and Bank of Communications International’s head of research Hao Hong about the changing dynamics of China’s A-share market.
Bloomberg experts spoke about China bond’s inclusion in broad market indices, factors driving USD issuance for Chinese funds, debt market reform in China, and the newly launched Bloomberg RMB Bond Suite.
Brenton Karmen, Global Head of Sales for Bloomberg, opened the event and spoke about the continued opening of China’s bond markets and how Bloomberg continues to invest in our product so global investors have the right tools – quality data, analytics and insights – to help them capture China’s long-term growth opportunities.
At the event, a survey was conducted with Hong Kong’s fixed income community and revealed that:
- The vast majority (77%) of market participants foresees China’s bond markets to grow this year and in the coming years, with 49% saying it will grow slowly this year and next and 28% saying it will grow slowly this year and exponentially in the next five years;
- 79% of market participants believe the China Bond Connect will spur demand for Chinese bonds;
- Capital controls (53%) and credit rating methodologies (26%) are key barriers to investing in China’s bond markets;
- Almost half (48%) polled foresee China’s onshore bonds to be included in global benchmark indices by 2020.
Now in its sixth year, Bloomberg’s China investor roadshow will cover over 10 cities worldwide in 2017 including Hong Kong, Singapore, Sydney, Luxembourg, Frankfurt, London and New York.