Shanghai Panel 1: Capital Markets
Within just 20 years after its official start, Chinese capital has become the second largest in the world, and it has made remarkable achievements in stimulating China's economy. Yet it is still increasingly important to accelerate the integration of China's capital market into the international system. Chinese leaders, recognizing such needs, attach great importance to the capital market and make efforts to obtain international discourse power, which provides an administrative buttress for the globalization of China's capital market. At the same time, difficulties and challenges for buy-out capital abound when foreign capitals enter China's market.Political hurdles, as usual, are the most contested issues. Recent massive attacks on US-listed Chinese companies by international short sellers have uncovered certain Chinese business practices that may be problematic.
Last year was an overbearing tide of IPO in the U.S. for the Chinese companies. Yet, investigations into accounting fraud and inconsistencies by U.S. regulatory bodies such as the SEC have caused many Chinese companies to reconsider their decisions to list on American exchanges, fearing the pressure and scrutiny associated with the IPO process. As a result, many of these companies have put their U.S. IPOs on hold and instead opted to list in Hong Kong or on domestic exchanges. The possibility of New York being unseated as the global financial capital is very real, as from 2001 to June 2011 the number of domestically listed Chinese companies rose from 1,154 to 2,229. Will tougher standards for U.S.-listed Chinese companies lead to higher quality listings, or are genuinely high-level companies being turned away by regulations? .
§ How to speed up the reform of China’s capital market to effectively help Chinese enterprises share market resources and realize business expansion and globalization
§ How to attract overseas investment with the aid of the capital market to improve China’s investment culture and promote the industrial upgrading and economic restructuring
§ How to enhance the competition strength of the Chinese financial institutions when dealing with overseas business
§ How to synchronize China’s regulatory and other capital market practices with foreign jurisdictions to minimize the cost of going out.
§ The state of U.S.-listed Chinese companies and make predictions as to the kind of listings that can be expected for 2012
§ Other topics raised from the audience