According to the data from the Ministry of Finance, by the end of August 2019, the balance of local government bonds nationwide was 21 trillion yuan, with an average interest rate of 3.53%. In September, the State Council executive meeting requested to speed up the issuance and use of special bonds of local governments, to promote effective investment, and to strengthen weak aspects and expand domestic demand.

Last night, CWM50 Youth Academic Forum—"Research on Bonds Pledgeability and Asset Pricing" was held in Beijing Fund Town.

Shan Fu, Executive Secretary of the CWM50 Youth Academic Forum, presided over the meeting. This meeting was attended by Wang Kejin, former director of the regulation department of China Banking Regulatory Commission (CBRC), Hu Yan, deputy general manager of the financial market department of Agricultural Bank of China, Chen Yali, executive vice president of Lianhe Credit Investigation Co., Ltd., Zhang Xuanchuan, deputy director of the research department of Asset Management Association of China, and other expects.

Chen Zhuo, assistant professor and doctoral supervisor of PBC School of Finance, Tsinghua University, shared on the spot his research result which helped him win Arthur Warga Award in 2019. Using the dual-market structure of China's unique inter-bank bond market and exchange bond market and the characteristics that some institutions participate in the two markets and some bonds are listed and traded in the two markets at the same time, his research discusses the influence of asset pledgeability on its prices from an empirical perspective, and estimates the shadow capital cost of participants in China's bond market.

Focusing on the theme of "Research on Bonds Pledgeability and Asset Pricing", experts and scholars from relevant institutions such as the Banking Financing Registration Custody Center, China Bond Financial Evaluation Center, China Securities, Tsinghua University, Beijing Fund Town, combining with their respective fields of expertise, jointly offered advice and suggestions for the long-term and sound development of China's economic and financial market.

This research’s on-site sharing and discussion will help the industry to further understand the pricing factors of China's bond market and the hidden financing costs of investors, and provide useful reference for the design and optimization of relevant policies and standards.