AGENDA. Emerging Markets Dialogue on Local Currency Bond Markets & Infrastructure Finance Beijing, November Hosted by.

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1 AGENDA Hosted by Emerging Markets Dialogue on Local Currency Bond Markets & Infrastructure Finance Beijing, November 2015 Co-organized by In cooperation with German Financial Supervisory Authority (BaFin), Bank Negara Malaysia (BNM), Securities and Exchange Board of India (SEBI) and the Financial Services Authority of Indonesia (OJK)

2 I. Introduction Over the last three years global capital markets have experienced significant volatility. As a result of an unprecedented low interest rate environment in developed capital markets, global capital flows have steered towards Emerging Market Economies (EME) to generate higher returns. However, in the wake of the most recent monetary policy decisions, capital markets in large Emerging Markets have suffered from substantial capital outflows. The impacts of these capital flows have shed light on the challenges big EMEs are facing today. Against this backdrop, and as part of the United Nations financing for sustainable development agenda, the development of local currency bond markets (LCBM) has regained momentum. LCBM play a key role in providing more stable and reliable mid- to long-term refinancing sources to public and private sector in EMEs. Especially the provision of long-term finance for governments and corporates is of high relevance for future infrastructure investments. The Asian Development Bank estimates that the Asia s EMEs need around $8.2 trillion to finance local infrastructure projects in the period from 2010 to Although EMEs have undertaken substantial efforts to address upcoming infrastructure investments, such as the recently founded Asia Infrastructure Investment Bank (AIIB) or the New Development Bank (NDB), public resources alone will not be sufficient to match future investment needs. The objective of this symposium to discuss on a senior technical level the topics Local Currency Bond Market development and infrastructure finance. Based on the individual experiences participating countries and key institutions have had, the symposium will elaborate on key questions and issues regarding how local currency bond markets could be further developed in order to fulfill its economic function. How can LCBMs contribute to the financing of upcoming infrastructure projects? What are the existing challenges? What can the LCBMs learn from each other? And what are the next steps that shall be conducted to develop the LCBMs? 1 Emerging Markets Dialogue on Finance, November 2015, Beijing

3 II. Emerging Markets Dialogue: Introduction The symposium forms part of the Emerging Markets Dialogue on Finance (EMDF). Its aim is to develop solutions for existing and future challenges in Asia s financial sectors and capital markets. Based on the principles of an innovative cross-fertilization process, representatives from key institutions from emerging markets and international experts will share their success stories and lessons learned to provide their peers with possible solutions for similar challenges. EMDF form part of the Emerging Market Sustainability Dialogues (EMSD), seeking to open up new and strengthen already existing channels for cooperation and dialogue between emerging and industrialised economies on sustainable policy, business and finance. III. Agenda Contacts Achim Deuchert (achim.deuchert@giz.de, ) Willem Pieter de Groen (willem.pieter.degroen@ceps.eu, ) Qi Lan (lan.qi@giz.de, ) Logistics: Zhang Weimin (weimin.zhang@giz.de, ) Conference hotel The Westin Beijing Financial Street Tel B Financial Street XiCheng District Beijing, Beijing Sunday, November 22, :00 16:00 Sightseeing (Optional) Bus transfer from The Westin Beijing Financial Street to Jingshan Park and visit of the east park of the Forbidden City (emperor s palace). 17:00 19:00 Evening cocktail reception Venue: Ritz Carlton Hotel, Beijing, Financial District, 1 Jin Cheng Fang Street East, Financial Street, Beijing China Welcome speeches Daniel Taras, Executive Director, Emerging Market Sustainability Dialogues, GIZ Karel Lannoo, CEO, CEPS 2 Emerging Markets Dialogue on Finance, November 2015, Beijing

4 Monday, November 23, 2015 Venue: National Association of Financial Markets Institutional Investors (NAFMII) 16/F, Financial Street Center, 9A Financial Street, XiCheng District, Beijing (Opposite of the conference hotel Westin). The first day will focus on local currency bond market development. Research institutions from China, India and Indonesia will present the key findings of their country reports on the stage of development of the individual local currency bond market, including successful approaches, challenges and opportunities. 08:30 9:00 Registration MORNING Local Currency Bond Markets Development in Asia 09:00 9:45 WELCOME REMARKS Chair: PBC Pan Gongsheng*, Deputy Governor, People s Bank of China Thomas Neumann, Director General, Asset Management, German Federal Financial Supervisory Authority (BaFin) Xie Duo*, Secretary General, NAFMII Oliver Auge, Country Director China, GIZ 09:45 11:00 PANEL 1: Setting the Scene - Local Currency Bond Markets in Asia In this session experts from think tanks and institutions will discuss existing approaches, their suitability for Emerging Markets and international as well as domestic requirements for a fully functional domestic bond market. The panelist will also share success stories experienced during the development of their individual local currency bond markets. Moderator: Daniel Taras, Executive Director, Emerging Markets Sustainability Dialogues, GIZ 11:00 11:15 Tea Break Lu Lei, Director General, Research Department of PBC Djauhari Sitorus, Senior financial sector specialist, World Bank Abhijnan Rej, Fellow, Observer Research Foundation India (ORF) Hendrikus Passagi, Senior Research Executive, Financial Services Authority of Indonesia (OJK) 11:15 12:00 PANEL 2: How to stabilize capital markets through local currency bonds? Asia s capital markets have experienced volatile times over the past months. This session will discuss how to stabilize capital markets and how to reduce dependence on foreign capital. Moderator: PBC 12:00 12:30 OUTLOOK PRESENTATION Qi Bin*, Director General, International Department, China Securities Regulatory Commission (CSRC) Representative of the People s Bank of China Shanghai Head Office Comparative analysis of the three country case studies on China, India and Indonesia, focussing on cross-country trends, bottlenecks and policy suggestions. Diego Valiante, Head of Capital Market Research, CEPS Douglas W. Arner, Professor in the Faculty of Law, University of Hong Kong 3 Emerging Markets Dialogue on Finance, November 2015, Beijing

5 12:30 14:00 Lunch Buffet, Westin Hotel AFTERNOON Promoting Institutional Investors - Enhancing the Attractiveness of Local Currency Bond Markets 14:00 15:00 PANEL 3: Promoting private investors to enhance Local Currency Bond Markets In order to contribute to the US$ 8.2 trillion of finance infrastructure investments that is requested in Asia, a strong involvement of the private sector is indispensable. Hence, this session will discuss how to best integrate institutional investors in building sustainable local currency bond markets. Moderator: Brian Tang, Managing Director, Asia Capital Market Institute (ACMI) 15:00 15:30 Tea Break 15:30 16:15 BREAKOUT 1 Mark Austen, CEO, Asia Securities Industry and Financial Market Association (ASIFMA) Representative of HSBC Representative of Insurance Fund China Strengthening Local Currency Bond Markets Participants will in two subgroups to discuss the development of local currency bond markets. Moderated by: Mark Austen (ASIFMA); Wan Tailei* (NAFMII) Guiding questions include the following: To what extent are Asian local currency bond markets comparable? What could the different countries learn from each other? Which role do private institutional investors play? What is the smartest strategy to better integrate institutional investors into the development of local currency bond markets? 16:15 16:50 PANEL 4: Global Perspective on Local Currency Bonds 16:50 17:00 18:00 21:00 Dinner This panel will place the development of local currency bond markets in a global perspective, looking at other capital markets initiatives in the region as well as initiatives to develop bond markets in other continents. Moderator: Karel Lannoo, CEO CEPS Frank Packer, Regional Advisor, Bank for International Settlements Representative of Bank of China David Yim, Managing Director, Head, Debt Capital Markets, Greater China, Standard Chartered Bank SUMMARY OF DAY 1 This session will summarize the key findings of the first day of the Symposium. Diego Valiante, CEPS Bus pick-up at 18:00 (Westin Hotel), Dinner 18:30 20:30, Return to hotel 20:30 4 Emerging Markets Dialogue on Finance, November 2015, Beijing

6 Tuesday, November 24, 2015 Venue: National Association of Financial Markets Institutional Investors (NAFMII) 16/F, Financial Street Center, 9A Financial Street, XiCheng District, Beijing (Opposite of the conference hotel Westin). 08:30 09:00 Registration MORNING Financing infrastructure investments in Asia / funding the One-Belt-One Road Initiative / Sharing Experience 09:00 09:30 Welcome Remarks This session morning session refers to the integration of private investors in infrastructure finance, related to the OBOR initiative. Chair: PBC Representative of the German Embassy Representative of the Financial Market Department of PBC 09:30 10:45 PANEL 5: The role of public financial institutions in infrastructure finance Development banks play a key role to promote infrastructure development by providing soft loan instruments, guarantees or blended finance options. This session will investigate the opportunities and challenges to use local currency bonds for infrastructure investments. Moderator: Brian Tang, Managing Director, Asia Capital Market Institute (ACMI) 10:45 11:00 Tea Break Jia Xinning, Deputy Country Director China, Asian Development Bank Tatiana Nenova, Program Leader, World Bank Representative of the China Development Bank Virgil Nae, Head of EIB Representation to China, European Investment Bank 11:00 12:15 PANEL 6: Setting the right regulatory framework for infrastructure investments How to set the right regulatory framework to support and boost infrastructure finance? This session will identify government initiatives to catalyse private investments. Moderator: Mark Austen, CEO, ASIFMA 12:15 14:00 Lunch Buffet, Westin Hotel Representative of the Director General, Research Institute of PBC Representative of the Securities and Exchange Board of India (SEBI) Imansyah, Director General, Policy Department, OJK Indonesia 5 Emerging Markets Dialogue on Finance, November 2015, Beijing

7 AFTERNOON DEFINING THE NEXT STEPS 14:00 15:15 PANEL 7: Emerging Market Success Stories This session will identify financing instruments/approaches that have proofed efficient in one country and might be replicated in another emerging market. Moderator: Karel Lannoo, CEO, CEPS 15:15 15:45 Tea Break Representative of Peoples Bank of China Azilah Ahmad, Bank Negara Malaysia (BNM) Abhijnan Rej, Fellow, Observer Research Foundation India (ORF) Intan Natasha Putri, Indonesian Ministry for Planning and Development (BAPPENAS) 15:45 16:00 REPORTING BREAKOUT Within this session the rapporteur of the breakout sessions will report back the findings of the two breakout sessions. Moderator: Diego Valiante, CEPS 16:00 16:45 DEFINING THE NEXT STEPS: Policy initiatives to strengthen the local currency bond markets This final session will give regulators the opportunity to present ongoing and new policy initiatives to develop the local currency bond markets for infrastructure related investments. Moderator: Daniel Taras, Executive Director, Emerging Markets Sustainability Dialogues, GIZ Representative of the Research Department of PBC Representative of the Securities and Exchange Board of India (SEBI) Imansyah, Director General, Policy Department, OJK Indonesia. Azilah Ahmad, MIFC Promotions, Bank Negara Malaysia (BNM) 16:45 17:00 SUMMARY OF DAY 2 AND CLOSING REMARKS The last session will provide a summary of the presentations and discussions during the symposium as well as an outlook to future events within the emerging market dialogue series. Daniel Taras, Executive Director, Emerging Markets Sustainability Dialogues, GIZ Karel Lannoo, CEO, CEPS 17:00 End of Symposium * To be confirmed 6 Emerging Markets Dialogue on Finance, November 2015, Beijing