Core Viewpoint - The Shanghai Clearing House recently held a conference on interbank credit derivatives, emphasizing the importance of contract-based credit derivatives in financial markets for pricing, risk management, and credit enhancement [1] Group 1: Conference Overview - The conference included representatives from 14 market institutions, such as the China Interbank Market Dealers Association, commercial banks, and securities companies [1] - Shanghai Clearing House presented on the development of contract-based credit derivatives and clearing services [1] - Representatives from SPDB and Guotai Junan Securities shared practical applications and trading strategies related to credit derivatives [1] Group 2: Importance of Credit Derivatives - Credit derivatives serve as crucial tools for price discovery, risk management, and credit enhancement, significantly impacting bond market pricing and risk management efficiency [1] - The Shanghai Clearing House plays a vital role in providing bilateral and central counterparty clearing services for credit derivatives, enhancing market infrastructure [1] Group 3: Future Directions - The Shanghai Clearing House plans to continue developing the credit derivatives market under the guidance of the People's Bank of China, focusing on market needs and collaboration with various parties [1] - There is an emphasis on product innovation, mechanism optimization, and expanding the business scope to support the high-quality development of the interbank credit derivatives market [1]

Group 1 - The core viewpoint of the article highlights the significant growth in the bond market managed by the Shanghai Clearing House, with a bond custody balance reaching 48.3 trillion yuan, a year-on-year increase of 22.3% [1] - In the first half of the year, the centralized clearing of bonds amounted to 11.2 trillion yuan, reflecting a remarkable year-on-year growth of 127.5% [1] - The Shanghai Clearing House has effectively supported the launch of the "Technology Board" in the bond market, facilitating the issuance of 272.1 billion yuan in technology innovation bonds [1] Group 2 - The Shanghai Clearing House has expanded its bond issuance support, facilitating the issuance of 494.03 billion yuan in policy financial bonds and 1.3 trillion yuan in financial bonds from commercial banks and non-bank financial institutions, representing year-on-year growth of 46.6% and 8% respectively [1] - The introduction of Bank of China Hong Kong as the first overseas clearing member marks a significant step towards internationalization, allowing foreign institutions to participate directly in domestic centralized clearing [1] - The dual development of the Yulan bond and Panda bond markets has effectively supported the internationalization of the renminbi [1] Group 3 - The Shanghai Clearing House launched new contracts for 3- and 7-year national development bonds and extended the interest rate swap clearing period to 30 years, with a total clearing scale of interest rate derivatives reaching 26.5 trillion yuan, a year-on-year increase of 70.2% [2] - The expansion of credit derivatives includes the inclusion of 32 new quality production enterprises into the CDS central counterparty clearing range, promoting the trading and clearing of private enterprise CDS indices [2]

Core Viewpoint - The Shanghai Clearing House has launched an online bilateral clearing service for credit derivatives to enhance the quality of the interbank credit derivatives market and improve the convenience of market participants [1][2]. Group 1: Service Launch and Features - The new online service allows market institutions to apply for entry through the Credit Default Swap (CDS) clearing system after signing a bilateral clearing agreement with the Shanghai Clearing House [1]. - This service provides a "one-stop" online processing for the entire lifecycle of credit derivatives, including business entry, clearing and settlement, collateral management, and valuation management [1]. Group 2: Market Coverage and Efficiency - Since its introduction in 2017, the Shanghai Clearing House has achieved full coverage of contract-based credit derivatives, capturing approximately 89% of the market share [2]. - The online clearing service has increased the efficiency of clearing and settlement, reduced disputes, and improved market transparency [2]. Group 3: Future Developments - The Shanghai Clearing House plans to continue collaborating with the People's Bank of China, the Trading Association, and various market institutions to enrich the product spectrum of credit derivatives and enhance clearing service quality [3]. - The focus will be on promoting reasonable pricing in the bond market, supporting financing for real enterprises, and improving risk management efficiency [3].

Core Viewpoint - The development of credit risk mitigation tools (CRM) in China's financial market infrastructure is enhancing the innovation and effectiveness of credit derivatives, particularly benefiting the financing needs of technology enterprises [1][2][7]. Group 1: Credit Risk Mitigation Tools and Technology Board - The integration of CRM tools with the "Technology Board" is helping to increase debt financing scale and reduce costs, addressing the financing difficulties faced by private enterprises [2][10]. - Since the launch of the "Technology Board," credit risk mitigation certificates (CRMW) have supported the issuance of technology innovation bonds, with a total of 6 registrations amounting to 395 million yuan, facilitating the issuance of 1.25 billion yuan in technology innovation bonds [1][7]. Group 2: Market Infrastructure and Business Models - The CRMW creation and bond issuance model has created approximately 150 billion yuan in support for over 340 billion yuan in bond issuances since its introduction in 2018 [3][6]. - Major banks such as Zheshang Bank, Ping An Bank, and Bank of Communications have been leading in CRMW creation, with amounts of 1.215 billion yuan, 1.056 billion yuan, and 410 million yuan respectively in the first half of 2025 [4][3]. Group 3: Regulatory and Operational Enhancements - Recent revisions to the CRM business guidelines have streamlined processes and improved operational efficiency, allowing for a more comprehensive regulatory framework for CRM activities [6][7]. - The Shanghai Clearing House has enhanced its services for CRM, enabling online processing for credit events and early termination of CRMW, significantly improving operational convenience [6][7]. Group 4: Broader Economic Impact - CRM tools are increasingly recognized as effective financing aids, helping to mitigate credit risks in the bond market and ensuring smooth financing for the real economy [10][11]. - Local financial institutions are expected to play a crucial role in the creation of CRMW, leveraging their regional knowledge to provide credit risk protection for local enterprises [10][11].