China's Emerging Financial Markets

ZHU Min is Group Executive Vice President of the Bank of China, responsible for group finance, internal control, legal and compliance, strategy and research. He joined the Bank of China in 1996, and led the group restructuring and the US$15 billion IPO in 2006, and the Bank of China Hong Kong restructuring and IPO in 2002. Prior to joining the Bank of China, Mr. Zhu worked as an Economist at the World Bank in Washington, D.C. for six years, before which he taught economics at Johns Hopkins University and Fudan University. Mr. Zhu received a Ph.D. and an M.A. in economics from Johns Hopkins University, an M.P.A. from the Woodrow Wilson School of Public and International Affairs of Princeton University, and a B.A. in economics from Fudan University. CAI Jinqing is a partner of Brunswick Group, an international financial communication firm. She advises multinational corporations and Chinese companies on strategic communication issues as well as on cross-border Merger & Acquisition transactions in the region. From 1993-2002, she worked in New York and Hong Kong in management consulting and venture capital focusing on China investments. Ms. Cai graduated from Wellesley College with a Bachelor of Arts degree and obtained her Master of Public Affairs from the Woodrow Wilson School of International and Public Affairs of Princeton University. Martha Avery is President, Avery Press, Inc., which works with Chinese publishers and individuals in bringing Chinese intellectual property to a western market. She served as General Manager for John Wiley in China from 1982 to 1990, following four years in the Commerce Department handling China trade in the 1970s, an MBA at the Wharton School, and a period in Warburg Paribas Becker in Wall Street. She established the Publishing Program for the Soros Foundation in Mongolia, and went on to serve in the Budapest offices of OSI. Throughout her career, Ms. Avery has continued to translate Chinese fiction and non-fiction and to author books.

Acknowledgments ix Preface xi Paul A. Volcker Introduction xiii Zhou Xiaochuan Overview xxiii Zhu Min Biographies lix SECTION 1 MACRO 1 Chapter 1 Fundamental Issues and Challenges Facing the Chinese Economy Guo Shuqing 3 Chapter 2 China's Global Challenge Stephen S. Roach 19 Chapter 3 China's High Savings, Investment, and Growth Rates, and Arguments for the Rapid Development of Financial Markets Li Yang 35 Chapter 4 The Evolution of Banking and Finance in China: Domestic and International Aspects Pieter Bottelier 53 SECTION 2 BANKING 71 Chapter 5 China's Banking Industry: Moving Forward in Accord with Reform and Opening Wang Zhaoxing 73 Chapter 6 China's Financial Transformation and New Challenges Stephen K. Green 91 Chapter 7 Commercial Banking Reform Wang Jianxi 107 Chapter 8 China's Restructured Commercial Banks: Nomenklatura Accountability Serving Corporate Governance Reform? Nicholas Calcina Howson 123 Chapter 9 Prospects for Chinese Banks: Why Global Banks Are Drawn To China Jamie Dimon 165 Chapter 10 Agricultural Financing in China: the Difficult Transition from a Planned to a Market System Chen Xiwen 181 Chapter 11 Retail Banking: Mastering Wealth Management to Capture Growth Opportunities Hans-Paul Buerkner 203 Chapter 12 Growing China's Retail Banking Business Ma Weihua 217 SECTION 3 CAPITAL MARKETS 235 Chapter 13 Shanghai Stock Exchange: History and Prospects Zhou Qinye 237 Chapter 14 China's Securities Companies: Growth and Prospects Wang Dongming 251 Chapter 15 China's Emerging Financial Markets: Challenges and Global Impact Kevan Watts 263 Chapter 16 China's Capital Markets Qi Bin 283 Chapter 17 Opening, Reforming, and Growing China's Bond Markets Lin Yixiang 307 Chapter 18 China's Asset Management Industry Fan Yonghong 329 Chapter 19 Venture Capital/Private Equity in China John S. Wadsworth, Jr and Wu Shangzhi 343 SECTION 4 INSURANCE 361 Chapter 20 China's Insurance Markets: Reform, Growth, and Prospects Yuan Li 363 Chapter 21 Strategy of China's Largest Life Insurance Company, China Life Yang Chao 373 Chapter 22 The Emergence of China's Insurance Industry Wu Yan 383 Chapter 23 China's Insurance Market Jacques Kemp 397 Chapter 24 China's Social Security System: Issues and Prospects Gao Xiqing 417 SECTION 5 MONETARY POLICY 431 Chapter 25 China's Monetary Policy: Facing the Challenges of Financial Globalization Wu Xiaoling 433 Chapter 26 Convertibility of RMB-denominated Capital Accounts: Process and Experience Hu Xiaolian 449 Chapter 27 China's Money, Bond, and FX Markets Xie Duo 459 Chapter 28 Financial Futures Markets in China Zhu Yuchen 481 Chapter 29 China's New Currency Regime and Onshore FX Markets Stephen Green 491 SECTION 6 SERVICES 513 Chapter 30 China's Legal System and the Financial Industry: The Past 30 Years Wu Zhipan 515 Chapter 31 Legal Services in the Field of Banking and Finance Xiao Wei 529 Chapter 32 The Accounting Profession in China: Review and Outlook James Turley 545 Chapter 33 China's Taxation and the Financial Industries Xu Shanda 569 Index 583