China and the US will start high level trade talks on May 9 in Switzerland.

Slowing loans, M&A and ECM hit banks' fees last year. Technology, exports and bonds are bright spots, while Hong Kong is increasingly being seen as a place to raise foreign capital. PBOC's governor Pan Gongsheng wants a proactive policy approach.

Outstanding mortgage rates for individual borrowers will be cut by 0.5%, potentially helping around 50 million households, while the reserve requirement ratio (RRR) for most banks will also be cut by 0.5%.

Pan Gongsheng is expected to further reform China’s capital markets.

Addition could potentially bring as much as $150 bln in inflows into onshore government bonds, CSOP Asset Management says

Citic Guoan Group, a subsidiary of state-owned conglomerate Citic, has defaulted on its Rmb3 billion bond. It is the biggest corporate bond default in China so far this year.

Chinese banks are expected to issue almost $21 billion in perpetual bonds this year. This will have a marked knock-on effect in the international capital markets.

Policies announced at the National People's Congress in Beijing will boost bond issuance in China. They promise to open up the world's third largest bond market even further.

Foreign investment in China's bond market is likely to increase as Chinese bonds are included in ever-more international indices.

Despite Beijing’s funding support for companies, corporate bond defaults in China are expected to continue at a brisk pace this year.