European Union Chamber of Commerce in China
Banking & Securities and Consumer Finance & NBFI Working Groups (Beijing)
Date: Thursday, 20th October 2011, 08:30-10:00 AM
Location: European Chamber Beijing Office, Room C411A
北京市朝阳区亮马桥路 50 号北京燕莎中心写字楼 C411A 室
Dear Banking & Securities Working Group Member,
We are delighted to invite you to the next joint Banking & Securities and Consumer Finance & NBFI Working Groups meeting to be held on Thursday, 20th October 2011, starting at 8:30am at the European Chamber’s Office in Beijing (please refer to the address above).
At this meeting we will have the honor and pleasure to welcome Mr. Murtaza Syed, Resident Representative, International Monetary Fund. He will give a presentation on the role of financial sector reform in sustaining China’s growth and then he will present the key finding of IMF’s Working Paper Targets, Interest Rates, and Household Saving in Urban China (full details of the report can be found here). This paper studies a panel of China’s provinces over the period 1996-2009 during which urban household saving rates increased from 19 percent of disposable income to 30 percent. It finds that the increase in urban saving rates is negatively associated with the decline in real interest rates over this period. This negative association suggests that Chinese households save with a target level of saving in mind. When the return to saving declines (increases), it becomes more difficult (easier) to meet a target and households increase (lower) their saving out of current disposable income to compensate. A main policy implication is that an increase in real deposit rates may help lower household saving and boost domestic consumption.
Please register with Ms. Mariana Li, mli@europeanchamber.com.cn, before COB Wednesday 19th October.
Tentative Agenda:
1. Presentation by Mr. Murtaza Syed, Resident Representative, International Monetary Fund on the role of financial sector reform in sustaining China’s growth and Paper Targets, Interest Rates, and Household Saving in Urban China
2. Any Other Business
If there are any issues that would like to raise for discussion in advance please let us know using the same contact details.
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For more information on the Working Group, or the European Chamber in general, please contact Xavier Sans Powell in Beijing, xsanspowell@euccc.com.cn or Tony Robinson in Shanghai, trobinson@euccc.com.cn