Recent developments of the Chinese and international financial system

March 16 Friday

Date/time

March 16, 2012, 14.00 - 17.30

Loc.

Shanghai

With

Yan Qiang, President, Tailong Commercial Bank Shanghai; Andreas Odrian, Head of Corporate Banking Coverage MNC China / Deutsche Bank

Type

Study and Information Program

On 16th March 2012 the KAS | Shanghai organized a study trip for the 2011/2012 KAS-SIFT-scholarship holders to discuss the challenges for the Chinese financial system against the background of its internationalisation.

Also available in Deutsch, 中文

Especially small companies in China have a very limited access to loans, since they are not attractive to big financial institutes due to small transaction volumes and lacking collaterals. New banking institutions like the Zhejiang Tailong Commercial Bank, want to overcome this financial strait. Tailong Bank was founded in 1993 originally as a credit cooperative in Zhejiang province and has become a merchant bank in 2006. The bank refers to itself as a national pioneer in the field of “microcredits”.

The president of Tailong’s Shanghai branch Yan Qiang explained in his speech, that the provision of financial services to small businesses includes high risks and great efforts. To determine the solvency of the applicant the staff of Tailong sets up close personal contacts with the companies, gathers information on the market and uses a variety of alternative methods like the inspection of electricity bills to analyse credit worthiness. Mr. Yan made clear, that the model of “microcredits” plays an important role in China to overcome the structural weaknesses of the banking system.

In the second part of the excursion the scholarship holders gained insight in the work of international banks in China at the Shanghai branch office of Deutsche Bank. Head of Corporate Banking Coverage MNC China, Andreas Odrian illustrated the strategic concept of his bank and the biggest challenges the Chinese financial system is facing. He also referred to the plans of the Chinese government concerning the transformation of Shanghai into an international financial centre by 2020. Since the market share of foreign banks is only 2% and their domestic investments are highly restricted, from a professional viewpoint the country still has a long way to go. In addition listings of foreign companies on the Shanghai stock exchange prove to be extremely difficult. Further endeavour has to be made to transform Shanghai into a more attractive financial centre.

In the following discussion the students were interested in which steps are necessary on the way to establish a financial centre in Shanghai in the near future. Mr. Odrian explained that along with the free convertibility of the Renminbi also further enhancement of legal certainty and a faster approval process is of great importance for international banks.

Exkursion Finanzsystem I

Dr. Peter Hefele, Director of KAS Shanghai, welcomes the KAS-SIFT scholarship holders at the Tailong Bank.

Exkursion Finanzsystem II

Yan Qiang, President of Tailong Shanghai, during his presentation.

Exkursion Finanzsystem IV

Andreas Odrian, Head of Corporate Banking Coverage MNC China of Deutsche Bank, explains the challenges international banks are facing in China.

Contact person

Dr. Peter Hefele

Head of the Regional Project Energy Security and Climate Change in Asia and Pacific and Acting Representative to Mongolia

Dr. Peter Hefele
Phone +852 28822245
Fax +852 28828515
Languages: Deutsch,‎ English,‎ Français,‎ Magyar

Partners

Shanghai University of International Business and Economics (SUIBE)