129779318770781250_49Boao Forum for Asia Annual Conference 2012 days to April 1, was held in Boao, Hainan, the meeting to "Asia in a changing world: towards a healthy and sustainable development" as the theme. Dongfangcaifuwang on the forum for the whole live. The following text for the Conference record. [14:32:39] host: all good afternoon! Members are invited to attend todayNew challenges of the financial crisis and the global capital market in the afternoon this link. 08 after the financial crisis, model of the world, especially the Western world for monitoring began to rethink, especially financial markets, if point specifically was the capital market. For the relationship between regulation and market, the problem was the capital market since its establishment at the beginning of the last century has always been a very tangled askedProblem. Markets are self-correcting capabilities, market is no regulation, self-regulation of the ability is there, and everyone is thinking about it. [14:36:08] host: as China's stock market today has more than 20 years of history, yesterday I spoke to President chat, because China's securities and Futures Commission is at the end of 1992Set up, so that by the end of this year, 20 anniversary of the China Securities Regulatory Commission will celebrate an anniversary. Today we have a very strong link, we discussed, to this joint, China's securities market, including supervision, including innovation, including reform, the next step to go. The subject is indeed very important, after 20 years, our China capital markets from a piece of whitePaper is nothing, go to today, has become the world's second-largest capital markets from a market perspective. If you look down, the next 20 years, as the country's economic development, it has the potential to really become the world's largest capital market. This really is now we have a lot of features, the first feature, most of the long in 10 or 15 years in the securities industryIndustry, both the regulation and the market, including securities companies for service. The second characteristic, combination of scholarly and practical, because there are four Dr is, we have a master's degree is to be ashamed of, and a professor. 3rd, a team of really neat, regulation, supervision of a team. First, Zhuang Xin, Vice President. I have justSay 20, if I remember it correctly, the Securities Regulatory Commission at that time contained a Securities Commission, the Securities Regulatory Commission is just one Office, a public institution, is directly part of Securities Commission, 92, 93 in the Securities Commission President. Village President to 20 today, although middle village President returned to the China Construction Bank, again when Vice Mayor of Shenzhen, in short,He has no securities of the ring. [14:37:14] host: second place, Mr Li jiange, Mr Li jiange is also very full qualifications, he was in the State Commission for restructuring, was once my boss, and then at the State Council's Development Research Centre. Mr Li jiange is combining the typical, Vice Chairman of the China Securities Regulatory Commission of China's earliest. Up to nowDirector of gold in our company, it is free in between regulation, supervision. CICC is first with foreign capital, is the experience of introducing foreign capital market management in China, this is the first, at that time, and Morgan Stanley. [14:39:16] host: third place, Mr Chi, Taiwan Stock Exchange Chairman, you look at his resume, it isScholars and doctors, are also academics combined with practice. Fourth, Fang, PhD, our Director of Finance Office in Shanghai, Mr Fang is also very ambitious, he wanted to genuine become China's financial hub Shanghai, it is indeed one of his dreams, he is constantly thinking about the dream. Side two, Richard AtTIAs, he is a thinker, I say today how to introduce you, he said to say two words to China, on China's financial capital, and he is the founder of Davos and the Clinton Foundation's founding, is a forum for ideas. Tim Dattels, he is also from the perspective of the international monitoring system, currently running nowChina's capital market development, through his perspective, earlier also worked at Goldman Sachs, great insight to these issues. [14:40:32] host: addition to Mr Wang, as well as long-term capital market once China Southern securities, securities, is China's largest securities companies at that time. CITIC Securities in the 90 's was at the time a very smallSecurities of the company, may rank after a dozen names, established in the mid 90 after CITIC Securities, today has become China's largest securities company, from a market perspective, might have a little profit. 08 later, had a short period of time, due to the global financial crisis, had several months is one of the world's largest securities firm, had been at one time. From zhuangzhuI started on regulation and supervision of the problems some discussion first. [14:41:30] Zhuang Xin: thank you moderator to give me a chance. China's capital markets, widespread concern, and we are also very concerned about. Topic is basically everyone in lively discussion. So I don't know what to say here today, because an open market, Information transparency, and we heated discussions. With moderator said, with more piece of work performed by my own, is from the reform and innovation of China's securities industry and the reform of security institutions supervision system in China talk about my views for discussion or criticism correct. [14:42:38] Zhuang Xin: the wheel from the United States to the EuropeanThe financial crisis, because a very large number. Resolve all these years, in reflection, study. Accepted lesson one of them, that is considered excessive and the inadequate supervision of the investment banking innovation is one reason for it. Innovation too much performance to a certain extent for the real to the virtual removal from the objective needs of the real economy, but also from the cognitive abilities of most customers and riskManagement of capacity. Second inadequate supervision, principally in the risk control and compliance management that there is no corresponding to keep up. [14:43:53] Zhuang Xin: go back and look at China's securities industry, here refers to our securities companies in China, also experienced a similar phase. So-called excess that is in the business of innovation in this regard to take offAway from has we market of needs, from has economic of needs, also from has customer of cognitive risk, and management risk of status, also had once by high income of liabilities, to lever rate do was very large, even misappropriated has customer of funds to for proprietary investment, this had caused has very huge of loss, also caused has on industry, and on market, and on customer also caused has very large of hurt。 There are a number of security agencies were closed as a result of which, themselves or close down. [14:46:00] Zhuang Xin: at this stage I should say from 04 to 07 for three years, in all its aspects, including the Government itself, including community, including industry, following a great deal of effort to solve the problem. Through historical risk solution, sound system, compliance managementStrengthening, and finally the problem with a regulatory system to the company rules of internal control and to the entire product, there is a solution. From 07, operation of the whole industry is relatively stable, the financial situation has been improving, compliance status for the entire run is also very smooth. Because such a round we were called comprehensive, soA comprehensive round, so in the next few years the Chinese stock market has had very large fluctuations, October 07, October 08, huge swings of the stock market and the impact of the international financial crisis 08 began, the two rounds of tests, experience of our industry are very quiet calm down without causing a turmoil that occurred in the past or do notSafety and risks. [14:48:03] Zhuang Xin: I was talking about here is not simply a comparison, but there is something similar. And international investment banks in Europe and, of course, our China Investment Bank, China securities company in his stage of development, the size of his trade, business, and professional standards it should be said that there is still a big gap.Just now when it comes to European and American Investment Bank has gone wrong, we know of course that is a higher grade of students doing something wrong a high grade question, this problem has not been done, our problems are in this stage, junior questions wrong, this is a different place, that we know very well. Difference brings another objective, which we alsoNoted. It is Europe's focus is to leverage the years of investment banking, dyspepsia assets, at the same time he faced a number of internal and external regulatory adjustment range of adjustment. China securities industry in General, by the present situation, I said just now, from its history, running the norms, financial stability, the Foundation is also one of the most solidStage. So now a difference, outstanding issues of China's securities industry and now it is not excessive innovation, is a lack of innovation, not a supply over the foot, but on market supply, inadequate supply of intermediary services provided. [14:49:38] Zhuang Xin: the problem is that as China's rapid economic development, China's economic ecology and constantly changing, But we Chinese securities companies in the provision of products, in terms of adapting economic, market, customers, to feel inadequate, insufficient, too slow, too less. And international investment banks, and other domestic financial sectors, which, by comparison, its development, innovation is not enough. These years this issue has caused concern of all parties, in particularSince last year, last year was a relatively compared to the US capital market conditions, was the worst year since 06, 109 US securities industry security company, it has the lowest profit since 07 year, 39.4 billion yuan last year industry-wide profits. Although the money earned relative to assets profit margin is not low, but yields are declining as a whole,And in 2010, compared to 2009 is decreasing. [14:50:34] Zhuang Xin: rising awareness of this, discussed more fully. This kind of discussion, so a concern it should be said that is a very good sign. As a regulatory body, our top priority is to safeguard the interests of investors, preventing systemic risk, maintaining cityThe efficiency and dynamism. In it contains a monitoring system, we want to help, it's good for the industry's innovation and development. On this issue, it should be said that in all these years reform of the regulatory system, in the implementation of the monitoring measures, it should be said that still concern, also made a lot of work. [14:53:11] Zhuang Xin: but at this stageSee, particularly since last year, not satisfied, call contains a criticism of the regulatory system in the Middle, criticism of the regulatory body, today two of our famous Investment Bank here, I simply said, they would do in that. On this issue I would like to show that our basic idea, there is a special clear to us, that not for regulation and supervision is supervision, monitoringPipe is not a single, static of a regulation and supervision is also a very hard job, here is also engaged in the supervision of Mr Li jiange, whisper I said just now, I said are you monitoring the most painful, he seems to agree with my judgment. The management of the securities company to manage his own, where self-discipline can solve things,What is the restriction to prevent the market, these things are not regulatory authorities to intervene, then as things. In theory, institutional economics is also the truth. Also from practice, infinity, market volatility of the market and our regulatory limitations of resources and relative stability of our regulatory rules always are full of contradictions. Any regulatoryPeople have had this experience. But our development of Chinese capital market and capital market development in foreign countries there is a difference. We are in the transition period, the transformation from planned economy to market economy it should be said that the early and middle of the establishment of the market, and most markets are outside under the regulation of the natural growth of a market economy. [14:55:45] Zhuang Xin:Bring a great deal of problems, as the mode does not change. In the offshore market failure, effective local government doing the addition. While the US market is early in the case of lack of Government more to alternative markets, alternative, alternative market entities. Along with the growth of the market, as the market's development, along with the company's growth, regulatory authorities should conform to thisA subtraction. Same thing, but different patterns and practices. For Chinese regulatory authorities, is to pay attention to the market's progress and the growth of the industry, market management, industry self-regulation initiative to return in a timely manner, the annealing is a process, we had to retreat, now retired, was to return in the future. But this fall is not blind and disorderly, isAn orderly, seamless. This trend, and supervision organs at all levels must understand, should strive to embody in practice. When it comes to conflict now, we are well aware we grew up in this industry, the market grew up. For example, original members not monitoring a common design which suits small to do? First, the tailor, since last year, we and the industry, andDemonstration of close joint investigation. Next we face in this case, we can be more practical to increase the pace of deregulation, self management, self-innovation for widening the space. At the same time increase the intensity of regulatory reform. [14:56:47] Zhuang Xin: I finally have to say, the idea of China Securities Regulatory Commission 04 expressly made it clear,Have clear through our files. Is whatever the market demands, companies have the ability and guaranteeing the rights and interests of the customer, the risk control measures, these should all go to the markets and industries, in the process, adhere to industry, markets, Enterprise and positive interaction between regulatory authorities, formed an integral operation of the market system, persistently towards the market and the rule of law, andTo move forward in this direction, steady progress. [14:57:32] host: thank you, Mr Zhuang, speaks very well, I'll briefly summarize, new supervisory concept is the addition of market development, market integrity while do subtraction. Following Mr Li jiange, earlier had he not only in regulators responsible comrades, now held in custody, twoRole has been involved in, and Li Jiange, you now have any comments on the reform of current securities market supervision? [14:58:45] Li jiange: the President speaks very system, does the past few years the SFC has done a lot of work. 08 start of the global financial crisis, China's securities companies while facing a lot of difficulties, but does not appearWhat a stock collapse and bankruptcy occurred because of risk or loss of the company. This I think and the Commission over the past ten years has done a great deal of, because the President is a regulator of management, I'm telling the way
tera power leveling, and straightening out, cleaning, reorganization of the security agencies have a great relationship, that we Chinese securities industry in 08 the financial crisis canSaid to be calm, successfully adopted. In General, the regulation is effective in the past. [14:59:56] Li jiange: but we also face many tasks of reform, has gradually matured after 20 years in the market, institutions, market size or strategists. Since last year, as the President has said, was China's Securities CommissionMarket concern about the momentum of reform. People say as a new President, so the SFC had begun to reform. This is, of course, there is something because President Guo worked with me turned out to be in the restructuring, is engaged in restructuring, reform consciousness more strong, but I think this does not necessarily see it as personal factors, overall reform is aBig trends. Since the beginning of this year, our premier in the Government work report and the two sessions, at a news conference, emphasized in the development of reforms to solve our problems. [15:01:26] Li jiange: at the opening ceremony of the Boao, Vice Premier Li keqiang is run through a spirit of reform in his speech. So reform is the solution to our securities markets still exist in ChinaA way out of the problem. President stresses the very image of the village, is a large market, a person grows up, should change clothes, tailor. We have not seen since the US does not meet 08 risk complacency. I give this example and the Chairman of the village is a bit different, I say we Chinese securities industry security body is basically a junior vitroAthletes, he just prescribedmotion, prescribedmotion without any risk. While others have been made optional, is a stunt, and fell a tripped out, we no longer think they are not as good as we have, is that we have not yet reached this stage, so we did face a lot of reform tasks. We have as a security company, primarily doing business, butSince I was a member of the National Committee, so in the beginning of the year on the two sessions, as performing their duties, also made a point on the reform proposals. [15:04:26] Li jiange: talked about the reform of shares system, I noticed a file made by the China Securities Regulatory Commission, 1th, guidance on further reform of new shares issuance system for commentsDraft of two opinions, this quite interesting. I was filled with the spirit of reform. New share issue system I think there may be some changes this year. On the two sessions, I also mentioned about delisting, dividends on the system of systems problems, I also raised a concern for everybody, government bond futures recovery issues. The problem I mentioned last year, once again this year, for theWhat does? I think rich Treasury bond futures market on China financial products are needed, in addition to the entire financial market reform, interest rates, and so on are very necessary. Particular conditions, not to say that he has the necessary, problems are also more mature. We all know 3.27 bond event that occurred in 1995, I was in the securities, futures I tube, is the central researchGroup leader, investigation and handling the whole thing. Thorough understanding of this, when the conditions are not ripe. 17 years have passed, we didn't, something the treatment, some people also put out, so we can sit down and talk about what this thing to the end. When that problem is for regulatory reasons, agenciesLegal issues, there is an important reason, futures market in the case of too thin a spot market, futures market development likely to go wrong. So the market itself has certain flaws. Our spot market today is 60 times of the year, overall financial reform is over 17 years there has been a great improvement, in particular our regulators on financial derivatives have also been more than a yearTry financial futures exchanges run very smoothly. [15:05:26] Li jiange: in addition to regulatory and market infrastructure for the entire market is totally incomparable and a dozen years ago. So in this case, I personally feel that the Government bond futures market has the conditions for recovery. I look at the China Securities Regulatory Commission on the issue of attitude is very positive,Because I, as market participants are called upon to restore the market. I was about to mention this aspect. Although I seem to have been echoing, I is not measured in this, I feel that the Commission has recently made a number of reforms in all aspects, so I'm on the reform and innovation of China's securities market is the future hopes. [15:06: 00] host: thank you, Mr Li jiange. Next Please concentrate in 5, 6 minutes speaking time, and can go with some interaction under. Next I asked Mr Schive, our Taiwan Stock Exchange Chairman, was also a scholar, from exchanges as self-regulatory organization governing the securities market to say a few words. [15:07:47] Mr SchiveIn capital markets, financial, from development to direct financial indirect financial last. Taiwan capital markets 1.7 times of current market value is currently the GDP, from the scale, the market is already very mature. Just the front two advanced capital markets it was mentioned that certain features. If it has too much of its performance or innovation, has deviated from its function, thisA market can be a problem. Taiwan's capital market over 20 years ago, 90, it grew very fast, and it's proven history. I will report a number, in 1990, when market value is US $ 2 trillion, 1999 to 12 trillion, 10 years has increased 5 times. IT is 6.4 trillion information industry took. Today we look at Taiwan-fundedIndustry, don't forget 20 years ago if you didn't have a strong capital markets, Taiwan's information industry today is absolutely today is not such a case. 1 undefined[15:11:13] Mr Chi: two days ago, when talking about a very important issue, mainland China in transition, financial functions can have anyPerformance. Capital market it is very efficient, quick, if you have a question you if that corresponds to the system design can be combined with, and its ability to solve problems is also very strong. Three or four years ago, when in 2008 when the financial tsunami, the global market is a mess. Taiwan's capital markets is the same, our index is just off the half. You to see ourJust off half the value, then what? Volume does not. 2008 to now, a total of only 4 listed companies on our exchanges delisting because of financial problems. This indicates that some of these listed companies are actually good, it can hang in the past. I remember at the time of the annual meeting of the global exchange at that time, you have a Word, despite the financial turmoilUnder the raging, marketing did not stop, it is also in the transaction. This fact tells us that just talking about reform, also referred to the excessive innovation, talk about market supervision, I very much appreciate the addition and subtraction problem. I also worked in the Government of Jin Jian, deeply realized that exists is to continue to reform the Government. What is the reason?A successful reform must be to create a lot of opportunities, pushed the market ahead of a large segment. But do remember, when the markets go, your system must be less than that of the past. So you need to do two things, a desirable reform not off, this is the liberalization. Liberalization of the reform process must be continued. But you will be with the newSupervision. Subtraction of liberalization was village President said just now, you're smart, this addition is going to do. [15:13:32] Mr Chi: take this opportunity to report about Taiwan now has two of the biggest challenges in the capital market, or how further we call globalization. We are in the context of globalization, from the investments we will probably do quite wellNow Taiwan is our capital market one-third market to foreign, Japan, and Korea than a little gap. We can provide. Another recent two or three years, our field is a new foreign companies to Taiwan to listing, the International Board is also in the Shanghai Stock Exchange to talk about for a long time, but my own experience, I say this step to go out, notSo simple, because the door is not open already, open, it immediately created a price effect. You have to come in the foreign enterprise is mediocre, not to. If it's really a very good in your market right now with that market their businesses to compare. I think our environment better, because we have a lot of investment in the Mainland of Taiwan-funded companiesVery well, so when we keep the doors open, so far we have 18 foreign companies for IPO, 18 3 are United States companies in Silicon Valley. TDR this time there are 31 document in the past, now add up to 34, simply put the current 825 listed company, 50 are foreign-funded enterprises. From this perspective, which is why IAre currently promoting a priority. [15:15:57] Mr Chi: it'll take you are probably concerned about cross-strait capital markets, we are very serious about this matter. Because Taiwan is here for the future development of the capital market-related
tera gold, so far we we first ETF Exchange is here to introduce to Taiwan. Three years ago, we have three stallsThe ETF was in Shanghai Stock Exchange and the Shenzhen Stock Exchange. But the third was introduced to Hong Kong. Last year, was in Taiwan, it is the Publisher of our own brokerage, and then he applied here to the lines of the QDII, Shanghai Stock Exchange 180 stocks, this document's release was a great success, a second this year at once. There is also a card company is here, Interested in him on both sides of the index, the index to our index of authorized, we would love to, we also hope very much that is not signed a memorandum of cooperation with Shanghai Stock Exchange, in the memorandum which we're very specific into a cooperation project for the preparation of indexes. Then go out from this place, of course, mainland China's sustained economic growthThere is no doubt. Is the economy of a storage warehouse in the capital market, the economic good times, capital markets will continue to grow. I want to reflect on both sides of the capital market should be according to the real economy, this place has unlimited space for cooperation. Thank you! [15:16:09] host: call Mr Wang Dongming, as China's largest securities company,You step down on China's capital market development, including regulatory issues, what can you make some comments. [15:17:50] Dongming Wang: as the President has said, I was as a market participant to talk about my views on regulation and supervision. Late last year and early this year, the central economic work Conference and the national financial work Conference highlightsA point, that is the Prime Minister's speech, financial firms to provide services to the real economy. This is also the Central summary 08, 09 and now the financial crisis now appear as we gradually Wenzhou China hollow due to underground collapse of such a trend to sum up this thing. We like financial companies how to better provide services to the real economy, IHe think is the most important financial enterprise services provides products and services to the real economy. If you want to provide a large number of products and services provided to the real economy, such as securities companies providing services mainly to, such as the enterprise to be listed, provide a listing service for him. Transactions in the secondary market, providing trading services for him. If the enterprise have taken place betweenLove, will you give him some acquisitions and mergers of services. Are these services and products are for real financial enterprise services to the real economy. [15:19:56] Dongming Wang: what products, what kind of service here, what is the market demand and customer needs, require professional intermediaries to provide this service for him, in the suitWho did the service quality of fraudulent customer behaviour, which I think is should provide a protection regulators. As the President has said, the SFC is two points of concern, I also very much agree with, one is to protect the interests of investors. Second, the prevention of systemic risk. Protection of investors ' interests, here involves the principles of supervision. I rememberPresident asked the United States regulatory principles, United States regulators to offer at that time, our principles is transparency principles. Stock of all products, its design and all information must be disclosed to the community, and to disclose to investors, so let it be known that, other investors have a better judgement. Our so-called called three public principles, open and fairAnd then also said a President, he asked I United Kingdom regulatory principles were. United Kingdom regulatory principles is the principle regulatory, supervision of several major principles on this one is untouchable, on top of this is the behavior of your market. SFC proposed to find the ground wire, open space, it is also very close to reality. [15:23:09] Dongming Wang: How can I understand systemic risk? From a financial perspective, is the massive financial enterprises, in particular systemic importance of financial bankruptcy of large continuous, caused a great deal of panic in the community, particularly financial companies. Financial enterprises, particularly banks, if his a series of chain bankruptcies, he will be for society as a whole bigTurbulence. This is SFC should prevent. Second, from the capital markets, assessment should be protected without too much of a large number of individual investors, we call the people. On top of this, our language is the one public, one private equity products, offering products, involving the interests of common people, be sure to carry out mass supervision of banks. As he relatesPeople's deposits. On the stock market, you have to make strict checks to those offering products, because the object that he purchased most of them are ordinary people, because people don't have much identification on the complexity of the product, its identification capability is weak. So I think this regulation more strict as possible. In addition to this, the above space should be let go. INow our securities industry unable to provide many social and capital markets products, approval is now too strict, anything you want to approve. This I can understand, because of the history of our country you look at investment banking, he is actually the one with the development of the market, as the needs of our customers and develop. You look at all the major investment banks, including, Including the European Investment Bank Goldman Sachs, are bills of smaller companies as customers needs and a little bit of market development, gradually, he has no concept of licence, our country's capital market, particularly in the securities industry, 92 when establishment of the SFC, set up three major securities company, was set up by the Government at that time, set up a securities company do? At that timeAbroad, you can do business underwriting, brokerage, asset management, and gave four licences, licence within four things all have to approve. Forming a supervision system and the operating system has a habitual thought. Provides a part of your service, but did not provide needed to market your services. [15:25:42] Dongming Wang, ChinaCapital market development to this day, this scale from 0 to 30 trillion, but itself is very slow in the development of the securities industry as a whole, with CITIC Securities, I communicate with Governor of the Bank of Beijing has a recently, when his 07, before he listed assets of only 200 billion, recently when I Exchange with him had reached 1.2 trillion, increased 6 times. CSI 0When almost 7 years total assets of 300 billion, but by the end of last year, CITIC Securities has dropped to 160 billion in total assets, I shrunk by half, product delivery considerably weakened. According to reason, itself a function of securities companies, should be be organizers of the market, is a liquidity provider, such a role is also the trading counterparties. We are nowIs carried out only in accordance with a licence, so did not play a due role in the securities industry as a whole, we also hope that, now the capital market in 35 may occur during an increasingly large role, particularly for China brokers has grown to now requires massive structural transformation, industrial upgrading, and at this point compared to the five-year, ten-year, securities marketNo, now your capital markets must have. Because capital markets not only the configuration resource functions, there is a very important feature, is to spread the risk function. Our country after decades, due to indirect financing as a dominant party, he now really gathered a lot of risks in the banking system, these things have to be gradually split from the Bank's balance sheet,By security products. In the securitization process needs further, just now Mr also talked to deregulation in order to free the market as a whole lot of functionality of creating products. [15:26:12] host: say a mean, is now going to do subtraction. Following Mr Fang, he is now the head of the Shanghai financial Office, from a local perspective on ourCapital market development in some views. [15:28:32] Fang: I would make a suggestion, I was from a local government perspective, but I do not represent local governments. Listening to the speech of Vice Premier Li keqiang is encouraged, he stressed in his speech the economy maintain long-term fast growth is possible, but is necessary to intensify the reform and opening up, to go further in playField in the configuration of resources basic function. I appreciate China's per capita GDP is only $ 5,000, growth is very large. But the potential of the space are not naturally release, is by speeding up the reform and opening up, increasing role to play in the market. Decline in economic growth in our country is now more obvious, a quarterly data members may see, May also clear than we imagine. Faced with such a situation may have two options, one is to add some support of monetary policy, finance, and so on, as our response to the financial crisis at that time, as practices. There is also one is to intensify the reform and opening up, making economic growth can be restored, I feel that the latter approach is more feasible approach, before that way notNow to work. Because today is the financial area of the financial to step up the reform and opening up, we three are doing now, as the President has talked about the Commission reforms, IPO reform measures announced on April 1 that the SFC, the CBRC also discussed how to enable more private banks into banking, these are all very good. Three of our countryNational centralized supervision system did in some measure of reform and opening up is necessary, but I find that it is not enough to make our economic growth as a whole, including the economic potential is fully released. [15:30:04] Fang: we should not forget the entire financial-related industries, in addition to national unified regulatory field, there is a lot in these setsWithin the areas of consolidated supervision in the financial sphere, such as private financing, the recent development of micro-loans, financial guarantees the company, PE, VC, private equity funds, factoring companies, non-public company stake exchange market, these market segments are very worthy of our attention. And in these areas is not small. Private financing, Wenzhou has 7, 000, you think about what is the national concept. Our vision to further relax, do more than stare at the national unified regulation of this area, also concerned is not centralized and unified regulation of financial sector development. It should say a development a few years more quickly, from the perspective of local government, centralized supervision system provides great support, but alsoNot enough, another system to further development. [15:33:04] Fang: I make a suggestion, is primarily a conceptual understanding, not a centralized monitoring system, that is not to say that the financial system is a system that cannot be, him law, not the centralized supervision mode not only to management. There are twoLaw, a limited partnership announced 06, 07, this is pipe PE, VC, private equity funds, and so on are in the law down tube. After this, very useful for the industry development. I have also referred to the non-public enterprise's equity trading market, that there is no formal law, but also provisions, equity only ifMore than 200 people can be defined in terms of non-public enterprises. This is why? I hope the limited partnership and other legal aspects can be modified, that is now a limited company limited partnership law firms only 50 limited partners, is called the LP is limited to 50, that's a small, if slightly expanded to 100 people, This business can grow. Shareholders less than 200 people in non-public enterprises are also slightly less, can scale up to 500 persons, United States is the concept of 500 people. This will greatly contribute to the PE, VC, equity market development of non-public companies. There is also a law is our national tax laws and how to further perfect. Such as limitedPartnership is Yes, but with limited partnership support of the tax system is not clear. LP how taxes, management fees how taxes, are not specified. In actual operation, tax departments often high not low, such as tax on LP, mentions some places should be in accordance with the measures for the self-employed tax from five syndrome to 5%, there is no certain provisions.Perfection of tax law, this reform measure, is to be able to further accelerate the speed, it will seriously affect the development of this area. I make such a suggestion. [15:33:38] host: let Tim Dattels from him that practitioner's perspective on China's stock market made a number of comments. [15:36:14]Tim Dattels: because I am not a doctor, so I think I 'm, 5 minutes to finish. Regulatory challenges are very large, as the regulator you work very hard. But I think there are different today, in the perspective of market practitioners, every day in the market over the past 20 years mopagunda, used to work at Goldman Sachs,Later to China and do PE, investment of Chinese enterprises, China enterprises. I this story might be a different story, if you go back 15 years ago, when China's capital market has just opened, Goldman Sachs is very active, I very clearly remember that Chinese Premier Zhu Rongji was a great thinker, is one of the most important one of the economists
tera gold, he began to State-ownedEnterprise reforms, started to develop capital markets. China began reform of capital market at that time. Many large enterprises in China, such as China Mobile, PetroChina listing, these companies listed in Hong Kong and New York-listed. After listing in overseas markets, he practices different from most countries, best of State-owned enterprises in most countries, these assets forExhibition of domestic capital markets. Is often a gift of foreign investors, has also carried out many reforms of State-owned enterprises in China. But I wonder, why not use the highest-quality assets to the development of domestic capital markets, and as a gift to foreign investors. When we experienced the Asian financial crisis, the dot-com bust, then there have been a lot of goldFinancial crisis, such as the 2008 financial crisis, we have seen many crises in the past 15 years, as an investor, I found that in China there are many entrepreneurs, companies do not have access to the capital they need, this is very strange. [15:38:39]Tim Dattels: China has a lot of resources, there is a lot of savings,And there are a lot of intellectual resources. I did a lot of work in the Silicon Valley, I see there are a lot of enterprise development in China, more than any country in the world. Many entrepreneurs can't get capital, although there are 3 trillion foreign exchange reserves in China, but many entrepreneurs can't get funding, this is very strange, I communicate and entrepreneurs, they said that theyUnable to get loans banks there, the good companies are attracted to the TPG these invest in good companies, we are long-term investors, and cooperation with them, until they matured, started to enter the capital market. Many of these enterprises in overseas financing of China, Chinese investment in capital market participants have lost these high quality investment opportunities in companies, I think ChineseThis market very support of State-owned enterprises and the banking system, and there is no support for SMEs, so I hope the regulators can seriously think about. I know there is a fact, the global financial crisis, global financial structures and the complexity of financial products makes the regulator has a lot of problems to concern, a few days ago also talked about the complex is not a good thing. However financing through the stock is notA complex product. Look at the China market, Chinese market had double-digit growth in the past few years, an increase of 20%. Quality of listed companies and those who have to invest in overseas or are overseas the quality of listed companies is different. [15:39:43]Tim Dattels: Chinese demographic dividend of just a few yearsDisappeared, the increasing maintenance payments, so the country has 15 years to reform their capital markets, allowing citizens to invest in banking products, investment in savings, while also providing the capital market products of high quality. I study here for 15 years, I feel obliged to make large companies, small companies access to capital markets, the speed must be faster, otherwiseCountry may deteriorate. I have no doubt that China's financial industry to respond to this challenge, but you want to have a lot of work to do, I'm not worried about the complexity, we first should provide a variety of stock financing of basic products. Thank you! [15:39:55] host: Finally we asked Richard Attias. [15:42:51]Richard Attias: I don't need 5, 6 minutes, based on my experience, I have 20 years of experience, I think the most important part is the question and answer, so I will save a lot of time to quiz you. After all the distinguished guests speak, I feel very humble. Including partner at TPG remarks, I feel that I have nothing to add. I just wanted to tell youTo share some of my ideas and my experiences and lessons learned. We draw some lessons from the Western world, founded after the Davos Forum, I created a forum in New York, concerned about the major topic facing the global economy. I think mainly about five words: the first is leadership. We now are crises which, of course, this is a financial crisis, and this is something that only occurs because of a lack of leadershipThe crisis. We are still facing a crisis, this is because the leadership has not been strengthened. The most important thing is to develop their leadership skills. The second word, transparency is very important. I have lived in Dubai for a year, which is 08, thousands of India people, Sri Lankans, Pakistanis must leave the country within 24 hours, because they lose theirWe asked them why they had lost their jobs? They say is caused by hedge funds, but they do not understand hedge funds, so our training is very important to the public. Many people do not understand that we are talking about. When we talk about supervision, talk about jiajia minus minus, when investor investments stock products when they do not know what is happening on the financial markets. OnPublic speaking, how to play role of a regulatory system, it is hard to understand, for example in the United States, we have a lot of supervision, regulatory policy now, but lack of independent monitoring. The public does not seem to understand the new regulations, they feel that the market there is no regulation of the market. [15:45:01] Richard ATtias: Goldman Sachs mentioned he supports the Republican Party and the Democratic Party, it is difficult to understand how you, as an objective of the regulators, because many organizations support the Republican Party and supported the Democratic Party. In Europe as well. I do not want to concern United States, days before France's greatest CEO have been saying that we should be taxed, taxed, CEOTaxes, taxes on senior management, because he earned 1 million euros a year, he earned 16 million euros a year, this is a great scandal, and influence the election, these issues must be addressed. The fifth word, collaboration. I feel that there is no collaboration, it is unlikely to succeed. When talk about regulation, innovation and reform, we take more than 20 minutes to talkThis problem. But I think more importantly for members ' questions and answers. We feel that we should take a more collaborative approach to cooperation between the companies, and not only to reform capital markets, while reform G20 and G8 mechanism, that both mechanisms have to be reform, we hope the leaders again become a great leader. Many of the Group of 20, the Group of eight madeGood idea, we want them to do better. Thank you! [15:45:21] host: now round is over, so as we strive for a 15 minutes question time, we rush a show of hands. [15:46:20] questions: I am Xu Yiqing, I come from Hong Kong, village President talk about finance to support the real economy,But we now discover a stock market listed company with solid economic performance in China is very distant. Few countries every year, economic growth was among the highest in the world, but the stock return on investment is coming countdown number, this phenomenon has lasted for many years. Our draft of the Securities and Futures Commission has just introduced full of expectation, this is an observation, but I do not know whySo, ask all of you experts. [15:46:38] host: some guests mentioned earlier economic development 10%GDP, why has not kept pace with the capital market. We asked Li jiange comment. [15:46:58] Li jiange: this or should the President answered better. As village President is the regulator, for listed companiesAs is the Chairman of another tube. [15:49:06] Zhuang Xin: no rescue issues, questions to Li Jiange, Mr Wang said. I understand your problem, your problem is that China's rapid economic growth, without the corresponding increase in shares of listed companies in China. Growth of listed companies in China, in the middle of my impressions, we listed 93 per share after taxesProfits of about $ 0.13, 96 were $ 0.19, in 2000 was $ 0.49, up to the end of March last year is about more than 400 companies have to disclose $ 0.51, listed companies are growing up. Do you mean the prices without a corresponding change. So I have to say my view, shares issues, regulatory authorities should not say, I'll talk about one of my trendJudge, I think China shares, stock indices with the economy on the whole, it is followed by the Chinese economy is a consistent, unique, and it is the difference in mature markets overreacted, a disturbing fall considerably. A delighted rose quickly, and rose can't wait up out of ten years after. Me like this. Total you see trends and trend of China's economic growth is consistent. Or it will be unable to interpret the 2000 index of 100 index points and now to old and now says the last fall, also in the 2,200 point, or you cannot explain the development of 20. Stock prices, we ask Mr Wang said. [15:51:24] Dongming Wang: China's stock market is a typical retail market, there is little too much bodyAgency is now currently a point called the Fund management company with probably less than 2 trillion of funds. Market value but we have nearly 30 trillion, there's a lot of non-circulation shares of, actually has the value in name, but in fact there is no circulation. We now have a big problem, so-called nominal capital markets on the one hand, whileA 40duowanyi, retail and institutional, add up to almost 80 trillion, this theory is not allowed to enter the market, he may be entering the market through various channels, but not mainstream. Here we a lot of retirement insurance, capital markets now you are basically not one, if you invest in, ready to invest, according to 20, 10 aLength to be, there should be a wealth effect in it. This market has little to show this kind of thing. Here, our regulator, for example, government agencies, this is also not allowed to enter the market, that are not allowed to enter the market, they had no access. There is a deposit that we get to the real mining investment, this block is not a marketThings. Or you can, otherwise you will not be able to enter. We were some of the large companies, for example, he made his investment, there is some money in the hands of many enterprises, but cannot vote in these things. These things are fragmented economy and interlinkages between economic, market fluctuations are very large. [15:52:28] Dongming Wang: I at this point, I think the number of institutional investors are too small. Secondly, on the system as a whole, how their savings into investment, this thing is not a good straightening out this relationship, cause now the current market is weak, no replenishment of a more sustainable funding mechanism in it. Such as the reform of shares system, there are a number of funds at the local,Your new listings, make some money, so it is difficult to have a secondary market for long-term investment. This requires a relatively long period of, for example, insurance funds, there are also large funds as institutional investors to invest in. [15:52:35] host: we talk to Tim Dattels. [15:53:20] TimDattels: I have made the development of enterprise of high quality, I also said the issue of QFII, reform I think Wenzhou is also very effective. I would like to answer your question, China's sovereign investment funds to invest in are doing around the world, now the QFII mechanism in China is very limited. Overseas funds if you have limited your quota, it is difficult toState investments. You have said if there are more institutional investors in the market, market development will be better and faster. [15:57:15] Qin Xiao: I talk about personal views on the issue, first of all, I very much agree with the President and Mr Wang, I, as a complement, I think the Government policy a bit. We say more specifically, weCapital markets in several large industries, one is financial, as the representative of the banking sector. An estate, is a power and energy. Market needs can be anticipated, and to computation, its pricing. These industries are being underestimated. Because you said a lot of policies, you never said it very clearly. As an industry, a mean interest rate liberalization. This is from the 16 IWrote file, now 18, to do something? They don't know when are you going to do, you do what is a symmetric or asymmetric, is progressive or non-progressive, people do not know, that I had underestimated you. Second, the Government platform 4 trillion, how many ' bad assets, I think the comparison of the CBRC, because he has a five-Classification criteria, if the economy is 8.5, how much he is the non-performing assets, 7.5, is how many ' bad assets, this can be. You don't say, I underestimate you again. In accordance with the Basel 3 increased provisioning coverage ratios, that is first in line with China's national conditions, is not so tight, not a Western balance sheet issue, I follow the Western medicineGo to eat. Also to make it clear you, how are you going to do, step by step. All the information is unclear, said that people underestimate you. Said coal-electricity joint venture, joint venture later failed. Price drop point peak, Valley, there is not a clear long-term policies allow you to enterprise pricing. Real estate policy, people don't know your restriction policy is a long-term policy. I do not knowAll you have to do something, said to return it to its normal price, far less a return to normal more than a return to the normal system as the Government says. Village President says regulators do not talk about the price, how can you talk about prices? You should be returning to normal system. How do you return to normal prices? Price is a person do? These things do not give clear policy, so that a fewA great industry to be undervalued stocks forever can't get up. [15:57:21] host: last question. [15:58:11] question: my business reporter, I ask a system problem, my question to the President, Chairman and Director of the party. Only the short answer about a problem you want four leadership. SFC is nowIn pushing reform of shares system, four leading everyone in a few languages on the observations or recommendations on the reform of shares system? Better than in the past about the first place to talk about the need to continue to improve. [15:59:13] Zhuang Xin: any of the market reforms are related to millions of households, and another, quite some time in the future. So I have noAny suggestions, we are doing a math problem, how to collect up to, after coming in all the elements of the collection are collection, seeking the best balance of line, or find an optimal number of conventions. The Convention is that all numbers are definitely not the digital embodiment of simple, but he embodied the elements in it reflects. I explained that not all satisfiedNor are not satisfied. We are looking for is this. In addition, as the approximate change, Convention number you want to change. [16:00:26] Li jiange: first draft, out of the IPO system, I looked at it's core is two words, one is strengthening the information disclosure system, allowing the market to identify. The second, played down the regulator on Enterprise profitGood ability to judge. But I personally feel that this draft has a defect, he is preventing the price too high, but if you give an impression that the market, investors believe in the future after this, pricing may be low, then fried the new issue is out. We fried the new shares to heaven's history is not forgotten. I said this seems to be that low pricingGood for investors, but fried new issues come out, the consequences are serious. I think the files also need to be balanced in this context. [16:00:51] Dongming Wang: this, one of the most important is that as the President has said, is to strengthen information disclosure. Second, further market, you have to believe that the market regulationBody smarter. Third, the development of institutional investors, because only they can have more say on the price. [16:01:46] Fang: the problem is just in front of the issue, end on distribution system reform in order to achieve a purpose, how very very good business in China is very active and willing to accept you to market shares, supplyAdequate, cause the issue prices are relatively reasonable. If you implement these two objectives, economic growth can we bring actual income to the shareholders. Yesterday, I also learn simple, I think the pace was more cautious step forward, from achieving the two objectives I am afraid there is a certain distance. [16:03:41] Mr Chi: a suggestion, ifMarketing smarter than the Government, why don't you review Exchange listing to do? Governments do not do. The Taiwan Stock Exchange, review of listed companies, we 100% responsibility is, Hong Kong is, seems to be in the world, like you, it is easier to divide the responsibility of. Xu Wen's problems just now, I mention you see Taiwan's listed companies, weExchange it for a year to earn the profits of our GDP 11%, 11% profit of it, 2/3,65%. This 65% 85% to you in cash. Taiwan Stock Exchange, if there is such a good company, institutions like, natural persons when they retire, he went to buy these stocks. Dividend payment policy, I remember President Guo on this,How dividends are your thing, at least to things you say, after speaking to investors to make decisions, the considerable impact on the long-term healthy development. [16:04:53] host: Chinese approval is basically the Government approval of the SFC, the Exchange, the same thing. Today one thing, securities regulation, plus minus, but the plus sign, minus sign thereIs not mathematics, is an art. This sometimes also have to listen to the views of the market, let us to the on stage guests a warm round of applause, thank you! Above text as Ben finish, without the guests I verified.
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