分类：金融科技周报道_英语

In the past few years, the Chinese bond market has been developing rapidly, but shows very low liquidity. What are the causes of the problem? We will look at this problem from 3 dimensions: development stage of market, the source of funding, and trading structure of the market.

Considering the development stage, China’s bond market has a relatively short history, thus market infrastructure is still inadequate. In terms of source of funding, banks are the biggest players in China’s bond market which supply 99% of the funds in the market. But banks are so risk averse that they have little interest in the secondary market bond trading. As for trading structure of the market, the US bond market has a multi-layer structure, yet China’s bond market is much more flat. In the US there are more than 40 electronic trading platforms catering the need of different types of customers. As a result, the liquidity of assets increased tremendously. However, in China the penetration of electronic trading is low, with 70-80% of bond trading still being conducted through traditional voice brokering.

However, the liquidity of the Chinese bond market has started to improved. Various investment tools such as financial monitoring model, portfolio management system, public opinion surveillance and trading price monitoring signals, are increasingly used by institutional investors. More e-trading platforms begin to enter this market, which will rapidly improve bond liquidity. Fin-tech is the magic key to solve bond liquidity dilemma in China.

POSTED ON OCTOBER 31, 2018 BY FINTECH ASIA
HONG KONG, Oct. 31, 2018 /PRNewswire/ — China’s leading credit-tech service provider, China Securities Credit Investment Co., Ltd. (“China Securities Credit Investment”), made its global debut at the world’s most anticipated cross-border FinTech event – Hong Kong FinTech Week 2018 (“Fintech Week”). As one of China’s leading FinTech companies, China Securities Credit Investment introduced its leading credit-tech services which are empowered by data and technology through its open exhibition booth, keynote presentation and new media display. Hao Chen, Chief Data Officer of China Securities Credit Investment, was also invited to speak at the roundtable “China FinTech Summit: The FinTech Ecosystem” together with experts from JD Finance and VCredit during the Fintech Week.

The Fintech Week was held at the Hong Kong Convention and Exhibition Centre and is the world’s first cross-border financial technology event, taking place in both Hong Kong and Shenzhen. It is one of the largest conferences on the calendar, attracting more than 8000 senior executives and featuring over 200 of the world’s top FinTech entrepreneurs, investors, regulators, and scholars, who are shaping the future of financial services by driving a technological revolution in the industry across Asia and globally.

This Fintech Week was China Securities Credit Investment’s global debut show. According to Hao Chen, credit-tech has become a critical drive of the modern financial industry. With data and technology being the key enablers, it is reshaping the credit industry and financial landscape. The new paradigms of economic development, regulatory environment and financial industry have endowed credit-tech with a large variety of application scenarios. As the leader in China’s credit-tech field, China Securities Credit Investment endeavours to use technology to build an infrastructure that serves the entire lifecycle of the credit assets (asset generation – asset trading and exchange – asset management). The company provides integrated services that cover the entire credit value chain, from credit risk management, credit enhancement, to credit asset trading services and management, which help to reduce the cost of credit risk management, accelerate credit asset circulation, and mitigate the risk of credit asset investments.

China Securities Credit Investment provides comprehensive credit value chain services to the financial market with its bond credit risk management platform, small and medium-sized enterprises loan assistance service platform, consumer finance loan assistance service platform and credit asset quotation service platform, revolving around four major application scenarios, i.e. large enterprise finance, small and medium-sized enterprise finance, consumer finance and RegTech service. Despite a relatively short operating history of three years, the company has shown tremendous development and has provided professional and customized credit services to more than 4,000 institutional clients including industrial and commercial enterprises, new economy companies, financial institutions, government departments and online platforms.

During the Fintech Week, the experts of China Securities Credit Investment and its subsidiaries brought a series of keynote speeches covering topics such as:

“New era for data-driven bond credit analysis”
“Stronger data risk control for better consumer finance”
“Blockchain finance for stronger SMEs”
“Is FinTech the magic key to solve bond liquidity dilemma in China?”
These keynote speeches focused on hot topics such as small– and medium-sized enterprise financing, bond credit, consumer finance risk management and showcased the comprehensive credit-tech services driven by data and technology that China Securities Credit Investment is proud to provide.

At the exhibition, China Securities Credit Investment also presented three products to the participants – namely CreditMaster (the integrated bond credit risk solution), CreditPortal (360-degree view of enterprise credit risk), and Dealing Matrix (the one-stop pricing information platform of the inter-institutional market). The products attracted a surging crowd of guests and were received highly.

“As China’s leading credit-tech service provider, we are honoured to participate in the Hong Kong FinTech Week this year and meet with top FinTech unicorns from all over the world. Looking forward, we will keep leveraging our strength in data, technology and finance, and providing the most trustworthy credit-tech services to the financial market,” said Jianwen Zhang, Chief Strategy Director of China Securities Credit Investment.

About Hong Kong Fintech Week

2018 Hong Kong FinTech Week is the world’s first cross-border financial technology event, taking place in Hong Kong, Asia’s financial capital, and in Shenzhen, China’s Silicon Valley. The event focuses on the most popular industry developments and the huge potential of the Greater Bay Area, with special attention paid to FinTech, Artificial Intelligence, online banking, blockchain and other emerging trends. The cross-border event has become an important channel for the development and application of FinTech in the Greater Bay Area. It has attracted a large number of quality enterprises and will strengthen exchanges and cooperation between Hong Kong and Shenzhen in the field of FinTech and promote Asia’s and the world’s technological revolution in the industry, shaping the future of financial services.

https://www.fintechweek.hk/

About China Securities Credit Investment

China Securities Credit Investment Co., Ltd. (“China Securities Credit Investment”) is a leading Chinese integrated credit-tech service provider. It was established on May 27th, 2015 and is registered in Qianhai, Shenzhen. The Shenzhen headquarter office is located on the 44th floor of the Shenzhen Stock Exchange Square. It has a registered capital of RMB 4.58598 billion. It also has a credit rating of AAA with a stable outlook issued by leading domestic credit rating agencies.

Empowered by its technology, China Securities Credit Investment aims to build an infrastructure that serves the entire life cycle of credit assets (asset generation – asset trading and exchange – asset management). We provide integrated services that cover the entire credit value chain, from credit risk management, credit enhancement, to credit asset trading services and management, which help to reduce the cost of credit risk management, accelerate credit asset circulation, and mitigate the risk of credit asset investments.

www.chinacsci.com

Related Links :

http://www.chinacsci.com

https://www.fintechweek.hk

http://en.prnasia.com/story/archive/2457279_AE57279_0

Nowadays there are more than 8,000 issuers with total outstanding amount of nearly 83 trillion yuan in China’s bond market. 83% of the issuers are rated at AA or above, representing 98% of the total outstanding debt balance. Since the first default case in 2014, the number and the outstanding balance of defaulted bonds have increased for consecutive years and have reached a historic high in 2018.  From January to October 2018 the total amount of defaulted bonds has reached almost 76.2 billion yuan, equivalent to the collective amount of defaulted bonds from 2014 to 2017. Institutional investors are facing significant challenges in making bond investments, and to avoid high-risk assets and to find suitable investment targets has become their primary need.

For institutional investors there commonly exist a number of pain points, such as lack of granularity within the public ratings, difficulty in achieving an alpha by distinguishing superior targets with better risk-reward profiles, and difference in risk preferences among various financial institutions. At present, the internal evaluation systems of most investment institutions are still at the stage of single bond analysis, which relies on scattered data and analysts’ personal experiences to draw conclusions, without any support from structured data analytics, systematic credit evaluation methods or large-scale credit rating coverage. As a result these institutions are in urgent need of a tailor-made, systematic internal rating system based on their own risk preferences to identify risks and select investment targets.

As such, CreditMaster provides a data-driven solution of bond credit analysis and evaluation. With the comprehensive suite of structured credit-related data as the fundamental, the entirety of public data in the markets as the statistic base and the technology as the driving force,  CreditMaster fully covers the Chinese public offering bond market, and helps investors to achieve accurate and efficient credit analysis to grasp the investment opportunities and gain insights into risks and create investment value.

According to IFC and McKinsey & Company, SMEs contribute to more than 50% of global GDP and provide almost two thirds of global employment. They are backbones in all countries’ economic development, and play an essential role in job creation.

Traditional banks usually require collaterals when lending to SMEs because of the complexity of business, lack of information and high intrinsic risks. Even worse, banks may reduce the credit exposure to SMEs when economy is going down. SMEs are still facing difficulties to access affordable finance.

With the recent innovation of Fintech, new opportunities have emerged to bridge the gap of SMEs financing. Applications based on distributed ledger technology (“DLT”), like blockchain, make it possible to build an efficient and synergic lending process. China Securities Credit Investment is building a flexible infrastructure based on DLT, which could be adapted on various cases for all players throughout the supply chain, like anchor companies, supplies, warehouses and logistic service providers, and funding sources, to connect themselves to the network and to authorize respective parties to acquire transaction information to complete credit assessment, funding and repayment processes.

With the development of Fintech, traditional financial institutions are more open to embrace technology, by applying internet technology to reduce information asymmetry with lower cost and higher efficiency, to serve more and more “long tail” users.

As a field with great development potential, Internet finance companies have grown much faster in market share in recent years than traditional institutions. In the entire industry chain, consumer financial institutions and investment institutions are faced with different risks and pain points. The identification and control of the risks within the underlying assets, data tampering risk, risk of borrowers and post-investment risk are closely associated with data risk control technology. As the leading integrated credit technology service provider in China, China Securities Credit Investment, through its subsidiary China Securities Credit Technology Co., Ltd.(referred as CSCT), has been deeply involved in the consumer finance industry and accumulated rich experience in how to effectively manage the above risks through the combination of data and technology.

As a technology guardian of consumer financial asset, CSCT has accumulated real customer data through actual projects of various application scenarios in consumer finance businesses, and has cooperated with leading data service providers in the market. Combining cutting-edge technologies, such as big data, machine learning, artificial intelligence, etc., CSCT is able to continuously optimize credit evaluation and anti-fraud technology, and provide comprehensive risk management services for personal credit businesses.