w88 casino News Network (provided by the w88 casino of Finance)2021At 16:00 pm on April 24, 2019, the Geng Hua Special Session of the 20th "Financial Culture Festival" Alumni Forum - Overview of China's Bond Market was successfully held. The speaker, Mr. Geng Hua, is currently the managing director of the China Securities Investment Banking Management Committee and the head of the bond underwriting business department. He has a master's degree from the w88 casino and has 15 years of experience in the bond market. From 2010 to 2012, he was seconded to the National Development and Reform Commission to be responsible for the review of corporate bonds. In 2017, he was elected as the "2017 Outstanding Trainer" by the Bank of China and Market Dealers Association, and in 2019, he won the 2018 "Excellent Corporate Bond Underwriter" Outstanding Individual Award from the Shanghai Stock Exchange. Mr. Geng Hua has been responsible for or participated in the declaration of more than a hundred corporate bonds, corporate bonds and association products. He has rich project experience and has an in-depth understanding of the securities industry. Wang Chunlei, deputy secretary of the Party Committee of the w88 casino of Finance, and Mu Xiaozhi, secretary of the Youth League Committee and 2017 counselor, also attended the symposium.
The symposium arranged a special link - Teacher Wang Chunlei issued an appointment letter as an alumni mentor to alumnus Geng Hua and took a group photo.
Guest sharing session
Alumnus Geng Hua said that bonds were born after World War II when the global economy was developing stably. The development of the international bond market has gone through four stages, which is consistent with my country's bond development. During the 1980s, our country had no domestic debt or external debt, and the bond market was blank. After 1987, the secondary market with treasury bonds as the main body was formed. After 1998, due to the long credit approval process and the limited scale of corporate bond issuance, my country's bond market entered a stage of consolidation. Since 2005, the bond market has accelerated its development. Alumnus Geng Hua has a deep understanding of the rapid development of bonds in recent years. He shared that he has caught up with the golden stage of the development of China's bond market.
Afterwards, alumnus Geng Hua introduced the internationalization process of my country’s bond market. With the deepening of reform and opening up, the development of the overall bond market has gradually become internationalized. The first step is to go out, and the second step is to bring in. The combination of the two will greatly promote economic development. Alumnus Geng Hua compared direct financing and indirect financing, and the scale of equity financing and bond financing. With the development of the capital market, direct financing accounts for an increasing proportion and plays an increasingly important role in the market.
Next, alumnus Geng Hua turned the topic to the buyers and sellers of bonds. Primary issuance market participants include issuers, underwriters and direct investors. Secondary market participants include market makers, currency brokerage companies, settlement agents, domestic investors and overseas investors. Regarding the composition of investors, the scale of assets controlled by commercial banks is too large in my country's financial system. The total assets of my country's 300 banking industries are as high as 300 trillion, while other investors, including non-bank financial institutions (referred to as non-bank institutions), only account for 50 trillion. There is no doubt that banks virtually control financial markets. In addition, alumnus Geng Hua also gave an overview of bond market products. The four paths for Chinese companies to issue bonds are: bond products under the National Development and Reform Commission, bond products under the National Association of Dealers, bond products under the China Securities Regulatory Commission, and bond products (financial bonds) under the China Banking Regulatory Commission or the Central Bank. He pointed out that the first three regulatory parts represent the separate supervision of three different departments, which are similar in form. Alumnus Geng Hua cited the example of the National Development and Reform Commission to further elaborate: According to the relevant functions, the National Development and Reform Commission requires a fixed part of the bond issued to be used for fixed asset projects. Then, alumnus Geng Hua also gave a detailed introduction to the specific bonds under each path.
Regarding the current development situation of corporate bonds, alumnus Geng Hua shared his personal experience: When doing corporate bonds in 2008, an average of one bond was issued a month. Today, 10 pieces are sent out a day, and 50 pieces a week are just routine operations. He lamented that today is different from what it was ten years ago. The bond market is more sound, more standardized, and has more opportunities. Alumnus Geng Hua summed up his experience of the bond market and said: "Everyone says that the stock market is exciting, but in fact the bond market is also very exciting. Every industry and industry always has its interesting aspects, and everyone needs to spend time to explore and learn, and choose the direction and career that suits you based on your major and interest."
Communication and discussion session
When asked about the ability requirements and core qualities of the bond industry, alumnus Geng Hua said that test-taking ability is very important, and professional knowledge can directly reflect one's ability. But that’s not all. Comprehensive soft power is more important. Doing investment banking work requires various aspects, such as the ability to withstand pressure, make judgments, and solve problems, which are all very important. Our learning of all aspects of knowledge is to improve our "first response ability", that is, to solve problems efficiently.
Regarding the prospects of the bond market, alumnus Geng Hua shared that he has experienced the golden ten years of the bond market, but there will definitely be four more years of platinum, ten more years of stars, and ten more years of kings. The size of issuance will only continue to expand, not shrink. The future paths of the bond market and stock market are waiting for students to further cultivate and explore.
Students generally talked about the issue of career choice. Alumnus Geng Hua encouraged students to become "investment bankers" and not to limit their own development direction, but to integrate skills from all aspects and use multiple resources to solve a complex problem. "How much achievements you can achieve does not depend on your position. Don't let your position limit you." He said, "Don't set a ceiling for yourself. The direction and trend are irreversible. Don't set a ceiling for your career."
Through this lecture, students have a more comprehensive understanding of the bond market and a clearer plan for future career development. I hope that all students can practice the teachings of alumnus Geng Hua in the future, forge ahead with determination and perseverance, work tirelessly to become financial professionals in the new era, and bravely reach new heights.
