Insight China: Shadow Banking & Overcapacity: On the verge of collapse? Go back »
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Time2013-08-29 | 16:00 - 18:00
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Venue:The Westin Beijing Chaoyang 金茂北京威斯汀大饭店
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Address:7 North Dongsanhuan Road, Chaoyang District, Beijing 北京市朝阳区东三环北路7号
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Fee:Members: 400 RMB |
Non Members: 600 RMB
Is China's economy on the verge of collapse? This edition of Insight China explores the economic issues on every China-watcher's mind: Shadow Banking and Overcapacity. Leading experts Arthur R Kroeber (Dragonomics), Joerg Wuttke (BIAC/OECD) and Joe Zhang (author of China's Shadow Banking: The Next Subprime Crisis), together with this session's Moderator Jamil Anderlini (Financial Times' Beijing bureau chief) will review and debate the issues on 29th August, 4:00 pm, at the Westin Beijing Chaoyang.
The shadow banking system is the collection of non-bank financial intermediaries that provide services similar to traditional commercial banks charging a premium to individuals and companies looking for finance. The size of the shadow banking system in China is overwhelming, at an estimated 34 trillion renminbi, and representing 36 per cent of all the loans made in China by the traditional, regulated banking sector. As authorities seek to rebalance the economy, the amount of bank credit available to China's millions of small- to-mid-sized companies is expected to tighten, only reinforcing the dependency of many of China's non-state-supported enterprises on the shadow banking industry.
Overcapacity, a scenario in which an industry or business cannot sell as much as it produces, troubles several key Chinese industries including the solar and wind, steel, cement, aluminium, and glass makers and shipbuilders. This situation is fuelled by government subsidies and was exacerbated by Beijing’s response to the financial crisis in 2008. Overcapacity is crushing profit margins in many industries and wiping out businesses globally.
China bears say if economic growth in China continues to slow, the massive industrial overcapacity would swamp China in a wave of bankruptcies, rising sudden defaults on loans made in the country’s shadow banking system, threatening to bring down China’s traditional banking sector and throw the world’s second-largest economy in jeopardy.
Join Arthur R Kroeber (Dragonomics), Joerg Wuttke (BIAC/OECD), Joe Zhang (author of China's Shadow Banking: The Next Subprime Crisis) and Jamil Anderlini (Financial Times' Beijing bureau chief) in discussing how big of a threat this mean to China's future economic growth.
Agenda
16:00–16:30 Registration and Coffee
16:30–16:35 Welcome remarks by the European Chamber President, Mr. Davide Cucino
16:35–17:20 Presentation by speakers
17:20–18:00 Panel discussion with Q&A session
18:00 End of Event
Sponsorship opportunities
For sponsorship opportunities please contact Ms Betty Yin byin@europeanchamber.com.cn / +86 (10) 6462 2066 ext. 23.
Speakers
Mr. Joe Zhang
Joe Zhang is the author of Inside China's Shadow Banking: The Next Subprime Crisis. Former Deputy Head of China Investment Banking at UBS and People's Bank of China official he is currentl ythe chairman of Wansui Micro Credit Company in Guangzhou. Drawing on his experience at UBS and PBOC, as well as the work of prominent economists, Joe Zhang explains on his book shadow banking in China for investors, economists, laypeople, and the general public.
Mr. Arthur Kroeber
Arthur co-founded the China-focused research service Dragonomics in Beijing in 2002 and is the editor-in-chief of China Economic Quarterly. Since Dragonomics' 2011 merger with Gavekal Research he has been head of research for the combined operation. Before founding Dragonomics, he was from 1987 to 2002 a journalist specializing in Asian economic affairs, and reported from China, India, Pakistan and other Asian countries. He has published widely in newspapers, magazines and academic journals, and is a fellow of the Brookings-Tsinghua Center in Beijing.
Mr. Jörg Wuttke
Jörg Wuttke is Vice President and Chief Representative of BASF China, based in Beijing. Since joining BASF in 1997, Mr. Wuttke has been responsible for helping guide the company’s investment strategies for China, negotiation of large projects and government relations.
Previous to joining BASF, Mr. Wuttke worked with ABB for 11 years; in fact his first professional encounter with China was in 1988 as the Finance and Administration Manager of ABB Beijing. In 1990, he returned to Germany as Sales Manager of ABB Power Plants Division, responsible for gas turbine sales to Africa and Russia. In 1993, he became Chief Representative ABB China in Shanghai and in 1994 moved to the President's Office of ABB China in Beijing, where he was responsible for the development and financing of large projects.
From 2001 to 2004 Mr. Wuttke was the Chairman of the German Chamber of Commerce in China. From 2007 to 2010, 2014 to 2017, and since May 2019 again he is the President of the European Union Chamber of Commerce in China
From 2011 to 2019, Mr. Wuttke was Chairman of the BIAC China Task Force of the Business and Industry Advisory Committee to the OECD (BIAC), a Paris based body of major business associations that lobbies the OECD.
From 2013 to 2016, and again since 2019 Mr. Wuttke is Vice Chairman of the CPCIF International Cooperation Committee, a group representing Multinational Companies in China’s Chemical Association.
Since its establishment in 2013, Mr. Wuttke is member of the Advisory Board of Germany’s foremost Think Tank on China, Mercator Institute for China Studies (MERICS), in Berlin.
In January 2019 Mr. Wuttke joined the International Board of the Stars Foundation, in Switzerland. stars - for Leaders of the Next Generation.
Mr. Jamil Anderlini
Jamil Anderlini was appointed Financial Times' Beijing Bureau Chief in February 2011, having spent four years as Beijing Correspondent. In 2010, Mr Anderlini was named Journalist of the Year at the Society of Publishers in Asia (SOPA) Editorial Excellence Awards. In 2008 he won a UK Foreign Press Association Award. He speaks and reads Mandarin Chinese and has lived mostly in Shanghai and Beijing since 2000. Prior to joining the FT he was Beijing Business Correspondent for the South China Morning Post for two years. Before that, he was Chief Editor of the China Economic Review.