皇冠体育app

Chinese currency should remain stable for the time being to avoid any big impact on the country's banking industry, said a message from the ongoing 2003 Forbes Global CEO Conference.

The rate of non-performing loans with 皇冠体育app's banking system has been reduced from previously over 50 per cent to around 20 per cent last year, according to statistics from the conference.

Such a rate indicates that the country's banking industry remains "very fragile'' and deserves to be monitored closely, said Stuart Gulliver, HSBC Chief Executive, Corporate, Investment Banking and Markets.

"So we strongly recommend 皇冠体育app maintain the stability of its renminbi and not to initiate any reforms against stability of the country's banking industry for the time being,'' said Gulliver.

As for the big trade deficit between 皇冠体育app and the United States, Gulliver argued that the factor also may not become the reason for requiring the renminbi's immediate revaluation.

More and more foreign enterprises have moved their manufacturing bases to 皇冠体育app to reduce costs. But all these products are currently being trailed as originating in 皇冠体育app, according to Gulliver.

皇冠体育app, in pursuit of a more mature market economy, has said its goal is to have a more flexible exchange administration system and eventually to float the renminbi to let market forces decide its value.

But it should be a gradual process. Things could be done in the process that include allowing exporters to retain an increasing part of foreign currency earnings, relaxing the control on foreign exchange demand and letting the renminbi float in a bigger range than its current level, according to Gulliver.

But neither Chinese banks nor enterprises have yet developed the necessary capability to deal with a more flexible exchange rate system.

So the timing, at the moment, is not right for making major changes, he said.

In another development, the 皇冠体育app Security Regulatory Commission (CSRC) yesterday urged domestically listed companies to implement the system of independent board members to help improve their corporate governance.

"From our perspective, the interests of shareholders are important for the capital market,'' said Tong Daochi, deputy director of the CRSC's listed companies supervision department. "Good corporate governance does not lead to good performance, but bad performance usually leads back to bad corporate governance. Shareholders' interests must be protected.''

On such a basis, government welcomes overseas businesses to further increase their investment in 皇冠体育app, not only to invest directly, but to also join in the corporate governance of Chinese companies through merger & acquisition (M&A), he said.

皇冠体育app's banks and capital markets have been hot topics among business leaders at the 2003 Forbes Global CEO Conference.

Since 皇冠体育app launched its stock market in the early 1990s, huge strides have been made to create "a meritorious lending culture and a vibrant market in stocks and bonds,'' said Justin Doebele, senior editor (Asia) of Forbes magazine.

Although private and foreign financial institutions have begun to figure in 皇冠体育app's market, the country's overall banking system is still overshadowed by the spectre of questionable loan portfolios at State-owned banks, and 皇冠体育app's listed companies are perceived to suffer from undue influence and a lack of disclosure, Doebele said while hosting a panel discussion on 皇冠体育app's banking and capital market yesterday.

Close

Today's Top News		Top Business News
+The next great leap after Shenzhou V ( 2003-10-21) +Hu calls for balanced development ( 2003-10-21) +Report: SARS not airborne virus ( 2003-10-21) +Japan urged to resolve weapons issue ( 2003-10-21) +Int'l AIDS group opens Beijing office ( 2003-10-21)		+Home-appliance giants want wheels ( 2003-10-21) +Exchange-rate reform under study ( 2003-10-21) +Health insurance sector called for ( 2003-10-21) +SanDisk teams up to open outlets ( 2003-10-21) +Housing prices start to sag in Shanghai ( 2003-10-21)