China Financial Markets III

Thursday, October 7, 2004, 8:00am ; 4:30pm
Asia Society,725 Park Avenue, NYC

Lead Corporate Sponsor:

Corporate Sponsors:

Collaborating Organizations: China Institute; Committee of 100; KWR International, Inc.; Manhattan Chamber of Commerce; National Committee on U.S.-China Relations; Weatherhead East Asian Institute, Columbia University; The Hong Kong Association of New York, Inc.

Agenda: China's Financial Markets III; will build on the momentum generated from the conferences we have held over the past two years examining China's financial markets. This year's event will evaluate the banking system and non-performing loan (NPL) crisis in China, the prospects for growth in the consumer finance arena, the environment for Chinese IPOs in international markets and the potential of the renminbi as a hard currency.

8:00 am Registration and Breakfast
8:30 am Welcome Remarks by Asia Society President Vishakha N. Desai
and Howard Chao, Chair, Asia Practice O'Melveny ; Myers

8:40 am - 10:00 am
Panel 1: The Banking System and Non-Performing Loan Crisis in China
Dispositions of non-performing loans (NPLs) by asset management companies and Chinese banks have been disappointingly slow and a large number of NPLs remain in the books. This panel will examine:

• Whether corporate governance, accountability and internal controls are improving and have changes impacted preparations for IPOs?
• Is the NPL situation is improving and what strategies can be employed to address the NPL problem in the future?
• The impact on Chinese banks of increasing foreign competition
• The position of second tier banks
• The role of asset management companies and banks in sales of NPLs
• The role of domestic investors
• Strategies foreign investors are adopting to develop the Chinese NPL market

Speakers:
Tim Grady, Executive Director, Investment Banking Division, Morgan Stanley
Michael T. Destefano, Managing Director, Financial Institutions, Standard ; Poor's
Zhu Min, Executive Assistant President, Bank of China
China Orient AMC ; INVITED
Moderator: Henny Sender, Wall Street Journal

10:00 am Coffee Break

10:20 am - 11:45 am
Panel Two: Consumer Finance in China
The consumer finance arena in China offers many potential opportunities. This panel will examine:

• What are the prospects for growth in the mortgage lending market?
• Lending for primary and secondary sales of property
• Reselling mortgage loans - Is there a market?
• Latest developments in the credit card and auto loan markets
• Foreign institutions ; How are they permitted to participate in Chinese consumer finance?

Speakers:
Javed Hamid, Director, East Asia and Pacific Department, International Finance Corporation (IFC); INVITED
Catherine Weir, Citibank China ; INVITED
Tim Stratford, Vice Chairman, General Motors China Group ; INVITED
Alan Zhang, Chairman and CEO, AnJia Group
Moderator: Howard Chao, Chair, Asia Practice, O'Melveny ; Myers

12 Noon Lunch
12:30 pm - 1:20 pm
Luncheon Keynote Address: Jon Anda, Managing Director and Head, Corporate Finance Group, Morgan Stanley

1:30 pm - 2:50 pm
Panel Three: Chinese IPOs in International Markets
There has been a marked increase in the number of Chinese companies doing IPOs abroad. However, there have been missteps with some of the Chinese offerings, leading to negative press. This panel will examine:

• How big is the IPO pipeline in China and how promising are these companies?
• State vs private Chinese enterprises
• How pervasive are disclosure and accounting issues with Chinese companies?
• US vs. Hong Kong listings ; What are the tradeoffs?
• The future role of Shanghai or Shenzhen

Speakers:
Lawrence Fok, Executive Vice President, Business Development ; Investor, Services Division, Hong Kong Exchanges ; Clearing Ltd.
Joseph O'Mara, Americas Partner in Charge, China Practice, KPMG, LLC
Xiangzhang Wang, Chief Executive Officer, China Life - INVITED
Changbo Yang, Managing Director, China International Capital Corporation Limited (CICC)
Fred Hu, Managing Director and Chief Economist, Goldman Sachs - INVITED
Howard Zhang, Partner, O'Melveny ; Myers
Moderator: Susan Lawrence, Washington Correspondent, Far Eastern Economic Review

3:00 pm - 4:25 pm
Panel Four: The Potential of the Renminbi (RMB) as a Convertible Hard Currency
China has taken small steps towards RMB capital account convertibility by creating the QFII program and allowing retail RMB bank accounts in Hong Kong. This panel will examine:

• What are likely steps and timeframe for RMB capital account convertibility, including QDIIs?
• How might China's interests in this process differ from those of the foreign financial business community?
• What are the links between capital account convertibility and the RMB becoming a "hard" currency?
• What impact would the RMB as a hard currency have on regional and international financial markets?
• How could Hong Kong off-shore RMB activities mature in the direction of London's role for the Eurodollar market?

Speakers:
Anita Fung, Treasurer and Co-Head of Global Markets, HSBC - INVITED
Steve Dunaway, Mission Chief China and Senior Advisor Asian Pacific Department, International Monetary Fund - INVITED
Liu Li-Gang, Senior Fellow, Research Institute of Economics, Trade and Industry (REITI)
Moderator: Albert Keidel, Senior Associate, Carnegie Endowment

4:30 pm Program Adjourns

For more information, please contact Susan Abbatecola at 212-327-9292 or susana@asiasoc.org

To register (credit card orders only)
Please print and fill out the registration form, then fax to 212-517-8315.
You may also contact the Asia Society Box Office by phone: 212-327-9276 (M-F 10am to 5pm).
Email: boxoffice@asiasoc.org