CICC Forum 2011 was Successfully Closed

Incepted in 1998 and consistently upholding its founding principle of “Insight & Foresight”, CICC Forum has grown into a platform of exchanges, pooling wisdom and insights while steering in-depth discussions on both the domestic and world economy. With the economic situation and financial market at home and abroad becoming all the more challenging in 2011, and moreover, exacerbated by a protracted recovery of the US economy and an evolving deterioration of the European debt crisis, the convening of the CICC Forum 2011 at this critical juncture is naturally drawing an unprecedented level of attention.
On November 18th, CICC Forum 2011 was held in Diaoyutai State Guesthouse as scheduled. A total of 15 senior representatives from the government, academia and market had an in-depth discussion over the theme of Challenges and Opportunities in Economic Transformation. They are: Zhou Xiaochuan, Governor, People’s Bank of China; Guo Shuqing, Chairman, China Securities Regulatory Commission; Liu Mingkang, Former Chairman, China Banking Regulatory Commission; Wu Xiaoling, Vice Chairperson, Financial and Economic Affairs Commission, NPC; Gao Xiqing, Vice-Chairman and President, China Investment Corporation; Han Jun, Deputy Director General, Development Research Center of the State Council; He Yafei, Ambassador, Permanent Representative of the People's Republic of China to the United Nations Office at Geneva and Other International Organizations in Switzerland; Du Ying, Vice Chairman, National Development and Reform Commission; Qin Hong,Director General, Policy Research Center, Ministry of Housing and Rural-Urban Development; Zhu Guangyao, Vice Minister, Ministry of Finance; Francesco Papadia, Director General Market Operations, European Central Bank; Isaac Souede, President, Permal Group; Ian Mukherjee, Chief Investment Officer, Amiya Capital LLP; and Zhai Fan, Managing Director, Asset Allocation & Strategic Research Department, China Investment Corporation.
Mr. Levin Zhu, President & CEO of CICC, delivered the welcome remarks, expressing our sincere gratitude to the guest speakers for their presence. While the world economy is still struggling to recover, the Chinese economy is slowly coming to terms with its own transformation, including implementing favorable policies, maximizing the effectiveness of the market, engineering a structural shift into technology intensive industries and service sectors, and identifying a sustainable development model that is compatible with the Chinese reality. He made a last note of appreciation of support that CICC has received from all quarters over its 16 years of history, affirming the objective for CICC to grow continuously into a world-class international investment bank.
Mr. Zhou Xiaochuan, Governor of PBOC, stated that in the current crisis, one decision would be whether or not to extend a helping hand. What’s more, how to help is also worth consideration. Survival or elimination of financial institutions should be determined by the market while bailing out an individual institution only constitutes a micro issue with no major macro effects. Like with any financial rescue efforts, the money of taxpayers should be applied for public purposes.
If there were any problems with China’s financial industry, help would be a favored choice for three reasons. First, the financial sector is the country’s pillar industry, bearing definitively on the proper functioning of the national economy. Second, China is an economy in transition. Problems of the financial institutions could impact the transitional process, thus justifying the support of public funding when held accountable for a solution. Third, social stability is a priority emphasis in China. Economic problems need to be contained from contagion, as to not be the detriment of stability.
Mr. Guo Shuqing, Chairman of CSRC, believed that as a large economy, China should mainly rely on the domestic economy and despite a host of uncertainties in the world economy; the Chinese economy is unlikely to experience a hard-landing. The most prominent issues are still related to whether its structure could be improved and quality enhanced. Five reforms in China are of paramount importance, being respectively land reform, financial reform, fiscal reform, social security reform and reform on education and science and technology.
Mr. Liu Mingkang, recently stepped down as Chairman of CBRC, indicated that the quality of GDP growth is worth the attention. China needs to deepen institutional reform, step up global competitiveness and industrial consolidation of its real economy, and spare no efforts in implementing targeted policy measures in fiscal and financial fields. He pointed out that the development of emerging markets is bringing in huge opportunities for such sectors as manufacturing, infrastructure and culture. When it comes to challenges, his list includes an incoherent set of production and service standards, an aging and less child-bearing population.
There were 300 guests to the Forum from the government, academia and CICC’s domestic and foreign clients, including 60 major institutional investors from HK and abroad.