Developing the Chinese High-Yield Market (By invitation only)Tuesday, May 1, 2012
6:30 AM - 7:45 AM
Tong (Cindy) Li, Senior Economist, Milken Institute
Charles Y.S. Liu, Chairman and Founder, Hao Capital; Senior Fellow, Peking University Center on China and Global Affairs
The Chinese economy is outgrowing its current financial system, which is dominated by state-owned banks. The country's equity market is volatile and still immature, while the corporate bond market remains underdeveloped. Private small businesses need access to capital, and the difficulty of obtaining credit, together with restrictions on bank interest rates, has led to a booming informal market with higher returns. The development of a Chinese high-yield bond market is urgently needed to fuel sustainable economic growth in the private sector, which is the engine behind China's economic miracle. How will this market contribute to enhancing access to capital for Chinese firms? What policy changes need to be made to facilitate the issuance of high-yield bonds? This session brings together business leaders and aims at providing solutions and strategies for the development of the Chinese high-yield market.