CDB Securities supports bond market opening-up

China Development Bank Securities, a subsidiary of the country's State-funded development bank, is seeking to play a positive role in the country's high-standard opening-up agenda on the back of its bond market expertise, head of the company said.

"We remain committed to boosting the real economy and will actively advance business lines that are associated with the country's bond market opening-up," said Sun Xiaokun, chairman of the securities firm.

Set up in 2010 with 80 percent of its stake held by the CDB, China's State-funded and State-owned development finance institution, CDB Securities is known as one of the major corporate bond underwriters in the country's securities industry while providing other financial services such as equity underwriting and asset management.

Leveraging its competitive edge in the bond market, CDB Securities has actively provided services for the financing projects contributing to the country's opening-up agenda in recent years, whose total proceeds have reached 43 billion yuan ($6 billion), Sun said in an exclusive interview with China Daily recently.

For instance, CDB Securities underwrote the bonds issued by Zhejiang Hengyi Petrochemicals Co Ltd, with the proceeds used in the construction of a petrochemical project in Brunei, he said. 

The company also participated in the CDB's issuance of green bonds that were sold to both domestic and international investors via the Bond Connect, a connect mechanism, Sun added.

Sun's remark came as China continues to steadily open up its bond market. The country has integrated the opening-up of the interbank and exchange bond markets this year, meaning that overseas investors who are approved to trade in China's interbank bond market are now also eligible to access the country's exchange bond market, either directly or via the Bond Connect.

A key report delivered at the opening session of the 20th National Congress of the Communist Party of China has further called for efforts to promote high-standard opening-up and steadily expand institutional opening-up with regard to rules, regulations, management and standards.

Sun said securities firms have a positive role to play in the country's high-standard opening-up. Efforts should be made to help more quality companies access financing in China's capital market, which could sharpen the market's appeal to international investors.

Securities firms should also provide customized services to meet the rising demand of corporate clients for cross-border finance as the domestic capital market further integrates with international peers, he said.

Sun said that a key to achieving high-quality development of securities firms is to ensure industry players have differentiated strategic positioning and specialized professional capacity, so as to cater to the diverse financing needs in the real economy.

CDB Securities has built itself a distinctive edge in bond market businesses by virtue of its parent company's advantage in this field, Sun said, adding that the company has underwritten more than 1.4 trillion yuan in bonds since its establishment, a number that ranks among the biggest in the country's securities industry.

Meanwhile, CDB Securities placed the development of corporate culture high on its agenda, Sun said, stressing that compliance, integrity, professionalism and prudence are the values for each and every one in the securities industry.

These values are vital not only for the capital market on the whole, but also for individual companies like CDB Securities, Sun said, adding that the company must also draw inspirations from the time-honored Chinese culture.

The China Securities Regulatory Commission and the Securities Association of China have called on securities firms to develop sound corporate cultures to boost the sustainable and healthy development of China's capital market in recent years.

zhoulanxv@chinadaily.com.cn