Yi Gang delivered a speech at the 15th meeting of the Expert Steering Committee on China's Debt Index Promoting the Opening of Bond Market from the Perspective of Market Construction

Yi Gang, president of the People's Bank of China, made a speech at the 15th meeting of the China Bond Index Expert Steering Committee recently, pointing out that the issuance of bonds should be effectively promoted to implement investor protection provisions, improve the quality of information disclosure during bond life, enhance the efficiency, transparency and predictability of bond default disposal, and further enhance the attractiveness of China's bond market.

Yi Gang pointed out that since the resumption of treasury bond issuance in 1981, China's bond market has achieved rapid development, and there is still a lot of room for growth in the future. Financial infrastructure is the hub of the financial market, and the Central National Debt Registration and Settlement Company Limited (hereinafter referred to as "Central Settlement Company") is in a very important position in the financial infrastructure system. Since its establishment in 1996, the Central Settlement Corporation has actively promoted the interconnection of infrastructure, created a safe and efficient bond trusteeship settlement model, opened the paperless era of China's bonds, pioneered the long-distance tendering of bonds, established the first domestic bond settlement mechanism, and laid a series of foundations for the development of China's bond market. Its contribution has become an important platform for national macro-policy operation and an important gateway for bond market opening. The Central Clearing Company has carefully built a set of indicators reflecting the price and risk situation of the RMB bond market in the past 20 years, which has effectively promoted the formation of fair bond prices and the enhancement of market transparency. It is of great significance for giving full play to the financing function of the bond market and serving the real economy. It also provides an important analytical tool for policy formulation.

Yi Gang also made speeches on interest rate marketization, RMB exchange rate and bond market mechanism construction. He said that the current benchmark deposit and loan interest rate is at a moderate level, and has achieved a balance between safeguarding the interests of the people and maintaining the competitiveness of banks, which is suitable for China's national conditions. In the process of further promoting interest rate marketization reform, the benchmark deposit interest rate of the central bank will continue to play an important role; the lending interest rate has actually been liberalized, but we can still further explore the reform ideas, such as the study of no longer publishing the benchmark lending interest rate, etc., while continuing to study the trend of the lending interest rate and the switching of the stock loan contract in depth, insisting that it is beneficial to the common people, It is conducive to promoting reform on the premise of solving the problem of financing difficulty and high cost for SMEs.

Yi Gang said that he was confident that the RMB exchange rate would remain basically stable at a reasonable and balanced level, that the spread between the 10-year Treasury bonds between China and the United States was still in a comfortable range, and that the possibility of interest rate increase by the Federal Reserve would be reduced, which would be conducive to the stability of the RMB exchange rate.

Yi Gang also pointed out that the bond market should be opened to the outside world from the perspective of market construction, and the gap between the bond market and the mature market should be narrowed continuously. First, market construction should be carried out in a legal way and a good legal environment should be created. Second, ideological collision and full discussion should be encouraged in market practice, new concepts should be put forward, new rules and agreements formulated and perfected, and international markets should be strived for. Acceptance, this is the strength of the financial market. Under the background of the opening of bond market, financial infrastructure should give full play to its professional wisdom, put forward professional plans, compatible with first-level and multi-level trusteeship modes, and better serve international investors. Third, it should build a good market culture, be in line with international standards, and strive for widespread acceptance and love. Fourth, it should further improve the efficiency of resource allocation and better play to the market in resource allocation. Function.