Insight China: Shadow Banking & Overcapacity: On the verge of collapse? Go back »
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Time2013-10-23 | 16:00 - 18:00
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Venue:JC Mandarin Hotel
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Address:1225 West Nanjing Road 南京西路1225号
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Fee:Members: 400 |
Non Members: 600
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 expert Joerg Wuttke, BIAC/OECD, Dr. Liu Shengjun, Executive Deputy Director, CEIBS Lujiazui Institute of International Finance, and Andy Rothman, China Macro Strategist, CLSA, will review and debate the issues on 23 October.
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 RMB, 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.
Agenda
16:00–16:30 Registration
16:30–16:35 Welcome remarks by the European Chamber
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 Mr. Simon campostrini, scampostrini@europeanchamber.com.cn / +86 (21) 6385 2023-113.
Speakers
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.
Dr. Shengjun Liu
Dr. Liu's research interest includes China’s economic and financial reform, internet finance, corporate governance, China’s financial system, international finance, M&A, and globalization of Chinese firms. He received his Ph.D in economics and bachelor degrees from East China Normal University and Renmin University of China.
His work has been published in Harvard Business Review (China), Asian Case Research Journal, CEIBS Business Review, Securities Market Herald, and others.
He authored the following books: Next Decade of China, Who Cuts Into Your Happiness: Predicament, Loss and Injustice in a Time of Change; Management of Power: Institutional Solutions to China’s Economic Challenges, The Globalization of Chinese Companies: Strategies for Conquering International Markets, China CEO: A Case Guide for Business Leaders in China, Flowers & Thorns: Globalisation of Chinese Enterprise, and Selected Cases of CEIBS. He wrote more than 70 column articles for leading media such as HBR.org, Global Times, Southern Weekend, China Business News, 21st Century Business Herald, Economic Observer, Shanghai Securities News, as well as magazines including Hong Kong & Shanghai, Nan Feng Chuang.
He was frequently interviewed by global media including Economist, Wall Street Journal, CNBC, Bloomberg, Financial Times, NHK, NPR, Phoenix TV, Diplomat, Knowledge@Wharton, etc. He was invited for the working lunch on Chinese economic transformation hosted by President of the European Council Herman Achille Van Rompuy and President of the European Commission José Manuel Durão Barroso. He spoke at prestigious forums including Davos Forum and Lujiazui Forum.
Mr. Andy Rothman
With a wealth of knowledge on China’s history, economic policies and politics following 17 years in the US foreign service, Andy Rothman joined CLSA in 2000 as our China macro strategist. He is based in Shanghai.
Andy first visited China as a student in 1980, and returned in 1984 as a US diplomat. His posts have taken him to Guangzhou, Hong Kong and Beijing, where he was director of macroeconomic and domestic policy at the US embassy. While working with the US State Department in Washington in the mid-1990s, he assisted with the normalisation of US relations with Vietnam.
Andy received a master of public administration from the LBJ School at the University of Texas in Austin and has been a State Department fellow at MIT’s Seminar XXI programme on national security. He is also a graduate of Colgate University.