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Focus on commercial bank credit risk management and create a benchmark for high-grade credit bond investment

——ChinaBond Valuation Center and China Merchants Bank jointly released "ChinaBond-China Merchants Bank Preferred Credit Bond Index"

Source: China Business News Release time: 2019-11-20

China Finance News reporter He Lijuan reported that on November 19, 2019, ChinaBond Financial Valuation Center Co., Ltd. (hereinafter referred to as "ChinaBond Valuation Center") was affiliated to the Central Government Bonds Registration and Clearing Co., Ltd. (" CCDC ") ) The “China Bond-China Merchants Bank Preferred Credit Bond Index” compiled in cooperation with China Merchants Bank Co., Ltd. (hereinafter referred to as “China Merchants Bank”) was successfully released in Shanghai. Liu Hui, Assistant President of China Merchants Bank, Dai Zhiying, General Manager of Financial Market Department of China Merchants Bank, and Niu Yurui, General Manager of ChinaBond Valuation Center attended the release ceremony and delivered speeches. Representatives from more than 80 institutions such as commercial banks, securities companies, fund companies, and insurance companies witnessed the release. .

Assistant President Liu Hui said that the release of the ChinaBond-China Merchants Bank Preferred Credit Debt Index is an enrichment and supplement to the credit bond index system, and China Merchants Bank will rely on this to further enhance its capabilities in bond business operation and management. For the financial market, the index will provide a more comprehensive reference index for corporate bond investment and financing. It will play an important role in reducing corporate financing costs and helping corporate financial relief, and it is a powerful embodiment of financial services in the real economy.

General Manager Dai Zhiying believes that ChinaBond-China Merchants Bank's preferred credit bond index effectively reflects the risk appetite and return characteristics of commercial banks' credit bond investment. The selection of constituent bonds covers the range of more than 4 trillion RMB bonds in the market. Its compilation benefits from the mature index compilation rules and rich experience of index compilation of ChinaBond Valuation Center, and it also reflects the operation of China Merchants Bank. Features and practical experience.

Niu Yurui, general manager, said that as a wholly-owned subsidiary of CCDC, ChinaBond Valuation Center has the mission to build a RMB benchmarking platform. The ChinaBond Valuation Center and China Merchants Bank jointly released the Preferred Credit Debt Index, which is a strong combination of the implicit rating products of the ChinaBond market and China Merchants Bank's internal credit evaluation mechanism, which fully responds to the long-term eagerness of credit market management issues by the majority of market institutions attention.

The “ChinaBond-China Merchants Bank Preferred Credit Bond Index” is based on China Merchants Bank ’s credit bond investment framework and standards, and at the same time, the ChinaBond market implicitly ranks AAA- and above bonds as component bonds. As of the end of October, the index covered 569 bonds issued by 153 issuers in 34 industries. The market value of the index exceeded 4 trillion yuan and the return rate was 4.41% in the past year. It is a high-grade credit with controllable risk and good dispersion. The debt investment benchmark is an ideal investment tool that meets commercial banks' income expectations and risk appetite.

Based on the authoritative status and professional advantages of the parent company CCDC as a central custodian, ChinaBond Valuation Center has actively fulfilled the functions of an authoritative benchmark pricing platform in the Chinese bond market after 20 years of development. The “ChinaBond-China Merchants Bank Preferred Credit Debt Index” prepared in cooperation with China Merchants Bank this time fills in the gaps that characterize the credit bond investment benchmarks of large commercial banks, reflects the credit risk management requirements of banking institutions, and replicates the high level for investors. Credit-grade bond portfolios provide effective tools with broad application space in market analysis, performance evaluation, risk management, and investment management.

In the future, the ChinaBond Valuation Center will conduct more explorations in the field of credit bond indexes and play a greater role in preventing and mitigating financial risks: promoting the in-depth application of cooperation indexes and cooperating with financial institutions to issue related products; continue to enrich the hidden market of ChinaBond. Including the rating index system, launching market implicit rating indexes with different maturities and different risk and return characteristics; actively exploring innovative credit bond indexes, using big data as a means to further explore and explore indicators that reveal credit risk prospectively, and apply them to credit bond indexes Among the compilation methods, the market provides more diversified credit risk management tools to serve the development of financial markets.

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