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July 3 (NBD) -- Heads of nearly 30 Zhejiang, China-based listed companies gathered together in the city of Hangzhou Sunday discussing financial issues facing brick-and-mortar businesses.

They didn't show much concern for the looming trade war between China and the U.S., saying that the U.S.'s tariff on tens of billions dollars worth of China goods won't make significant impact on Zhejiang's real economy. 

In contrast, they paid great attention to corporate bonds and exchange rate issues. 

The Chinese currency will rise against the U.S. dollar in the long run, but there will be downward pressure in the short term, the managing director of an international investment bank said. 

Zhang Desheng, Chairman of multi-industry conglomerate Zhejiang Wanma Group, noted private enterprises are facing more tests against the backdrop of economic uncertainties, escalated trade tensions with the U.S., and China's reform of economy structure. In this case, it is key for enterprises to boost domestic demand and have ample capital at hand. 

With regard to the frequently reported bond defaults year to date, a listed company's chairman said defaulting on bonds doesn't mean there is something wrong with a company's primary business, and most bond issuers failed to make payments because they put the money raised via bond issuance into business expansion and faced difficulties in maintaining their capital chain when their bonds expired. 

In the views of a number of participating experts, guaranteed return and falsely high bond rating are two major issues of the bond market. If the issues can't be addressed, a health bond market won't be possible.

The above-mentioned managing director told 21st Century Business Herald that bonds play an important role in commodity economy. If the economic development encounters setbacks, it will be most likely due to the incapability to solve issues relating to risk transmission and spirit of contract, which are precisely the derivatives of the bond market.  

Email: lansuying@nbd.com.cn