Capital market reforms on right track
(Alexander Wan and Selina Lo)

Clear visions for industry efficiency, better pricing, definition of risks amid others are what China needs for its capital market development, said Kevan Watts, Chairman of Merrill Lynch International Inc at the 18th China Daily CEO Roundtable on November 18 in Beijing.

The roundtable, with the theme "Capital Market Reforms - Visions, Process and Imperatives", involved senior officials from China Securities Regulatory Commission (CSRC) and China Banking Regulatory Commission (CBRC) together with some 30 CEOs and senior executives from global financial institutions.

"Financial systems dominated by banks cannot work anymore. They need to be more flexible and sensitive to prices and risks," said Watts, who has decades of extensive industry experience in Europe, the Middle East, Africa and the Asia Pacific and is also the honorary chairman for the roundtable.

He started discussions with an assessment of China's inherent financial systems structure. "A system based on banks is not sustainable. Financial services all over the world have revolutionized through information technology."

Securities industry faces challenge
(Barry Livett)

There is no denying that China has achieved a considerable feat in establishing the basic infrastructure of a securities industry within the space of 15 years. However, there are numerous structural impediments that persist in China's securities markets which prevent them achieving the objective of allocating capital efficiently and functioning as a proper market mechanism. Many of the problems stem from the situation inherited when the theoretical foundations of the market were laid, and others relate to the restrictions resulting from the current environment in China.

Instead of developing a market where the most deserving efficient companies were awarded with funding opportunities, a quasi-market structure evolved to carry on financing those companies with the most urgent socio-economic problems aligned with the strongest government connections. Faced with minimal or no deposit interest from bank savings, China's savers were galvanised to channel their savings into pre-dominantly lacklustre investments.

Developing China's capital markets
(Kevan Watts)

China is undergoing an extraordinary period in its economic development as it moves from a centrally planned economy to the vibrant marketplace we see today. Much of the reform has been done at a measured pace.

Two decades of economic growth and the consequent increased financial requirements of domestic companies have resulted in the need for more international participation as China moves to create open and transparent capital markets.

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About China Daily CEO Roundtable

As a service by China Daily for the global business community, China Daily CEO Roundtable is a by-invitation network of government leaders, CEOs and senior executives of FORTUNE 500 and China's largest companies, for the collective learning and sharing of executive insights on China's strategic issues relating to its economy, business and social developments.

Discussions will be given prominent coverage on China Daily.

Sixteen roundtables have been held in Beijing, Shanghai and Hong Kong over the past year on various issues such as the macro economy, China's regions, China-Asia Business partnership, Hong Kong's future role, entertainment, lifestyle, automobiles, branding, the next generation MNC, corporate social responsibility in China, etc.

Upcoming Roundtables:

The 19th China Daily CEO Roundtable: Made-in-China Under Globalization
November 17, 2005 Grand Hyatt Shanghai

The 20th China Daily CEO Roundtable: Next Generation Design, Creativity and Innovation for China

Honorary Chairmen:
Mr. Victor Chu, Chairman, Far Eastern Investments
Professor Patrick Whitney, Director, Institute of Design, IIT

November 30, 2005, Palace Hotel, Beijing

The 10th China Daily CEO Roundtable:
Sustainable Development in China

Honorary Chairperson:
Dr. Jane Goodall, UN Ambassador for Peace, Founder, The Jane Goodall Institute

December 6, 2005, Grand Hyatt Beijing

For enquiries on invitation, speaking opportunities, sponsorship, strategic partnership and customized events, please email Alexander Wan, Executive Editor, China Daily CEO Roundtable at:

For more information about our precious
Events, please visit our website at

Previous Sessions

No. Topics Date
1 China's Regions: Towards Balanced Development April 20, 2004
2 Taking Pulse of China's Economy Growth May 25, 2004
3 The Role of HK in Building China's Financial System July 19,
4 Entertaining the Nation August 26, 2004
5 Globalizing Chinese Brands August 31, 2004
6 Life Style China Nov. 12, 2004
7 China:2005 and Beyond Dec 3,
8 Road Ahead for MNC Feb. 25, 2005
9 China-Asia Business Partnership: Implication for Multinationals March 29, 2005
10 Auto Sector Growth Sustainable April 28, 2005
11 Corporate Social Responsibility in China May 13, 2005
12 2020 The World's Shanghai June 17, 2005
13 Economic integration drives growth in Asia June 24, 2005
14 Nation's healthcare reform examined August 26, 2005
15 CEOs view digital entertainment puzzle September 30, 2005
16 World-class event offers a ride in the fast lane October 14, 2005
17 Hotel and tourism development in China November 14, 2005

Copyright 2004 by
All rights reserved.

The 18th China Daily CEO Roundtable

Honourary Chairmen

Kevan Watts
Chairman, Merrill Lynch International Incorporated

  Mr. Alexander Wan
Executive Editor, China Daily CEO Roundtable
List of Delegates
Name   Campany   Title  
Patrick Tse ChinaBooz Allen Hamilton Head of Financial Service Practice, Greater  
Dr. Huang Yi China Banking Regulatory Commission
Director General, Supervisory Rules and Regulation Department
Dr. Yao Yong
China Banking Regulatory Commission Deputy Research Director, Supervisory Rules and Regulation Department
Dr. Yang Dongning

China Banking Regulatory Commission Section Chief, Supervisory Rules and Regulation Department  
Hu Bing China Banking Regulatory Commission Deputy Director General of Market Supervision Department  
Li Qingyuan
China Banking Regulatory Commission Director General, Research Center  
Wang Hui
CITISC Senior Managing Director  
Wade Deffenbaugh
Deloitte Leader, Audit PartnerFinancial Services China  
Peter Schmidt Dresdner Kleinwort Wasserstein General Manager  
Giorgio Magistrelli
  European Union Chamber of Commerce Executive Manager  
Barry Livett EU-China Financial Services Co-operation Project Coordinator Director - Securities Industry  
Wang Tingke China Everbright Bank General Manager, Research & Development Department  
Ren Guangming Hong Kong Exchanges and Clearing Limited (Beijing Rep Office) Chief Representative  
Qi Fu Huarong Asset Management Corporation (Beijing Branch) Deputy General Manager  
Bruno Houdmont ING Asia Chief Representative  
Wang Jiansheng International Finance Corporation Principal Investment Officer, Financial Markets East Asia and Pacific Department  
Ray Brooks IMF Senior Resident Representative  
David Timblick Lazard Asia (Hong Kong) Limited Managing Director (Asia)  
Lyn Kok Standard Chatered Bank Country head, Multinational Corporates & Strategy  
Jenna Ma Tianhua Capital Director and Vice President  
Kevin Chen Embassy of United States of America Economic Specialist  
Norman Warner Warner Financial Corporation President