China should push ahead with the liberalisation of its markets and currency - the Renminbi (RMB), according to experts at Wee Cho Yaw Singapore-China Finance and Banking Forum organised by the National University of Singapore (NUS) Business School. However, they added, the rules have to be clear and players should respect the regulations.
At this year's Forum, experts discussed the economic implications of Beijing's policies for banks and financial institutions in Asia, particularly China and Singapore, as well as the outlook for the RMB. The Forum was also told that trading in China shares recently accounted for 61 per cent of the global figure in a single day's trading data.
This year's theme or the event was 'China at the Financial Economic Crossroads: The Critical Next Steps' and featured experts including Huang Haizhou, Managing Director, China International Capital Corporation (CICC); Lim Hwee Hua, Executive Director, Tembusu Partners, and a former Cabinet Minister in Singapore; Sau Kwan, President of E Fund Management; and Gao Xiqing, the former President and Chief Investment Officer of the China Investment Corporation (CIC).
"The liberalisation of the markets and asset prices like interest rates and currency value was a key topic in the Forum. All the speakers told us to open the door but to make the players respect the fundamentals," said Bernard Yeung, Dean of NUS Business School and Stephen Riady Distinguished Professor.
Yeung added, "Reforms are clearly needed to improve the efficiency of the capital market which is vital for China's sustainable growth. We need leaders with wisdom and a caring heart, as well as positive international engagement; sustainable growth of China's economy is critical for its citizens and the rest of the world."
Kwan provided insights into the development of the fund management industry highlighting the exceptional 1500 per cent growth for mutual funds in China over the past decade.
Another panellist, Lim, spoke broadly on the policy impact of financial reforms, saying, "Whatever reforms China undertakes, these have a significant impact on Asia and the rest of the world, so getting them right is important. These include introducing the move towards more market forces at play, having well-established and well-capitalised banks with the right leadership, and allowing bad institutions to fail as any mature market would."
Held annually in Singapore or China, the Forum is organised by CAMRI with the aim of fostering a deeper understanding among industry professionals and scholars of the challenges and opportunities in the finance sectors of China and Singapore.
The Wee Cho Yaw Singapore-China Finance and Banking Forum was established in 2008 with a donation from the then-Chairman of UOB, Wee Cho Yaw, and his family.