Developing corporate bond markets in Asia

The idea for a seminar on developing corporate bond markets in Asia was first broached in June 2005, when Governor Zhou Xiaochuan of the People's Bank of China (PBC) invited 12 major central banks in Asia and the Pacific to participate in a high-level seminar on financial markets. During the subsequent consultation between the PBC and the Bank for International Settlements (BIS), it was recognised that there had been numerous seminars on financial markets in Asia in general, including on developing local currency bond markets. But these seminars had neglected one issue that cried out for the attention of emerging market central banks: the development of the non-government segment of the local currency bond markets. While much progress had already been made in developing the local government bond markets, it was clear that the corporate bond markets in much of Asia remained behind their government bond counterparts, especially in terms of market liquidity. Hence, Governor Zhou's proposed topic was widely welcomed by the prospective participants in the seminar. He then asked the BIS Representative Office for Asia and the Pacific to help organise the seminar.

Thirty participants including high-level officials from central banks in Asia and the Pacific, the European Central Bank and the BIS took part in the seminar. Among them were Governor Zhou of the PBC, Joseph Yam of the Hong Kong Monetary Authority and Malcolm D Knight of the BIS. The participants also included a few academics, regulators and market participants.

To prepare for this BIS/PBC seminar, the central bank participants were asked to provide background papers to describe their local currency corporate bond markets and identify important policy issues. The academics and other participants were asked to focus on particular issues. For the seminar itself, these issues were grouped around five themes: (1) why a corporate bond market? (2) legal and institutional framework; (3) role of information; (4) market liquidity; and (5) the role of central banks in market development. This volume makes available revised versions of all these papers.

The papers presented at the conference were published as BIS Papers No 26 in February 2006.

Introduction Page
Developing corporate bond markets in Asia: a synopsis of the Kunming discussions (PDF: 6 pages, 51 kb)
Guonan Ma, Eli Remolona and He Jianxiong
1
   
Speeches  
China's corporate bond market development: lessons learned (PDF: 4 pages, 37 kb)
Zhou Xiaochuan
7
Sharing experiences in developing corporate bond markets (PDF: 2 pages, 53 kb)
Malcolm D Knight
11
   
Background paper  
Developing corporate bond markets in Asia (PDF: 9 pages, 84 kb)
Jacob Gyntelberg, Guonan Ma and Eli Remolona
13
   
Contributed papers  
Why a corporate bond market: growth and direct finance (PDF: 2 pages, 51 kb)
Marvin Goodfriend
22
Developing multiple layers of financial intermediation: the complementary roles of corporate bond markets and banks (PDF: 7 pages, 71 kb)
Suresh Sundaresan
24
Corporate bond market microstructure and transparency: the US experience (PDF: 8 pages, 83 kb)
Amy K Edwards
31
The role and function of rating agencies (PDF: 6 pages, 63 kb)
Thomas Keller
39
An overview of the Australian corporate bond market (PDF: 11 pages, 101 kb)
Ric Battellino and Mark Chambers
45
The development of China's bond market (PDF: 5 pages, 55 kb)
Mu Huaipeng
56
Developing corporate bond markets: A European legal perspective (PDF: 13 pages, 130 kb)
Erwin Nierop
61
Developing bond markets in Asia: experience with ABF2 (PDF: 6 pages, 66 kb)
Julia Leung
74
The corporate debt market in India (PDF: 8 pages, 70 kb)
V K Sharma and Chandan Sinha
80
Development of Japan's credit markets (PDF: 8 pages, 197 kb)
Hibiki Ichiue
88
Developing the corporate bond market: the Korean experience (PDF: 18 pages, 153 kb)
Myong-Jong Lee and Soo-Ho Kim
96
The corporate bond market in Malaysia (PDF: 15 pages, 97 kb)
Muhammad bin Ibrahim and Adrian Wong
114
The New Zealand corporate bond market (PDF: 7 pages, 178 kb)
Simon Tyler
129
The corporate bond market in the Philippines (PDF: 10 pages, 152 kb)
Nestor A Espenilla, Jr
136
Developing Singapore's corporate bond market (PDF: 6 pages, 1554 kb)
Chuan Teck Lee
146
The corporate bond market in Thailand (PDF: 9 pages, 68 kb)
Pongpen Ruengvirayudh and Sakkapop Panyanukul
152