On June 12th of 2019, the 6th Global Public Investor Launch and Seminar of the Official Monetary and Financial Institutions Forum (OMFIF) was held in Singapore. Practitioners across central banks, sovereign funds and public pension funds attended the summit to discuss the topics around the development trend of global public investors and a sustainable world economy. Some representatives included experts from the World Bank Group, the Federal Reserve of United States, Japan’s Financial Services Agency, the Bank of England, the Ontario Municipal Employees Retirement system, Fitch Ratings, etc. Jianwen Zhang, the Chief Strategy Officer of CSCI（China Securities Credit Investment Co., Ltd.）and the team were invited to attend the summit to give a speech on harnessing financial technology, and share the business innovation and practice of CSCI in the area of credit technology.
The site of OMFIF Global Public Investor Launch and Seminar in Singapore
As the representative from CSCI pointed out during the summit, as a leading credit-tech provider in China, CSCI endeavors to use technology to build an infrastructure that serves the entire lifecycle of the credit assets (asset generation – asset trading and exchange – asset management). CSCI 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. At present, CSCI has provided professional credit ratings, customized credit risk solutions, and credit technology-driven asset management services for more than 4,000 institutional clients such as industrial and commercial enterprises, new economies, financial institutions, government departments, and internet platforms.
Especially in the aspect of supply chain finance, CSCI has effectively built a multi-party trust system through blockchain technology and big data risk control technology, serving the small and micro enterprises as an independent service provider. In the case of supply chain financing, CSCI completes the loop of goods flow, information flow as well as the capital flow. As a result, the core anchor enterprise’s payment creditability is passed through to the second, third and fourth-level suppliers, so that the small and medium-sized suppliers can easily obtain financing from banks. To some extent, this mechanism has effectively solved the financing problems of the small and micro enterprises.
Representatives from CSCI discussed fintech applications with other experts
In addition, CSCI will also publish an article on the Bulletin magazine of OMFIF, titled “China’s bond market is too big to miss”. Valued at $13tn, China’s onshore bond market is the third largest in the world, making up 11% of the bonds market globally. Despite its massive size and potential, China still remains one of the least penetrated bond markets by global investors. According to the People’s Bank of China, at the end of 2018, foreign investors accounted for 2.3% of the market in terms of value. However, this has started to change. Bloomberg has begun including Chinese government bonds and policy bank securities in its $54trn Bloomberg Barclays Global Aggregate index. The inclusion into major global benchmarks is expected to attract trillions in foreign inflows and reshape global capital markets in the coming years.
Jianwen Zhang argues that CSCI can make an ideal partner for international investors as they increase investment allocation to China. CSCI’s complete and real-time database for China’s capital markets, credible and intelligent credit evaluation model, effective price discovery, and thought leadership from more than 200 credit analysts, make us a one-stop access to China’s credit bonds.