New regulations and alternative investments set to be key discussion points amongst financial services professionals in November 2011
SHANGHAI, Aug. 22, 2011 /PRNewswire-Asia/ --
NEWS HIGHLIGHTS
As China's regulators continue to open up the country's financial and securities markets, investment professionals around the world are turning their eyes towards Shanghai and the upcoming Investment Performance Analysis & Risk Management (IPARM) Summit in November 2011.
After the Chinese Correction of 2007 and the global financial crisis of 2008, the China Securities Regulatory Commission (CSRC) introduced several regulations aimed at curbing speculation in the country's financial markets. However, it also opened up the market to alternative investment tools designed to allow traders to profit from both rises and falls in the stock market such as short selling and margin trading. Stock index futures made their debut in April 2010.
"The risks in alternative investments are typically more difficult to measure and manage because data is more difficult to collect and mitigation tools are very limited," explains Yizhi He, Head of Risk at Hua An Fund Management. "By contrast, conventional investment options usually have reliable information and tried-and-tested tools to support decision-making."
He is one of 20 eminent professionals scheduled to make keynote presentations at the three-day conference and workshop, which will also feature discussions on managing investors' expectations, especially with regards to alternative investments such as stock index futures, gold derivatives, and hedge fund products. IPARM China 2011 will also gather professionals from central banks, investment regulators, fund managers, asset managers, banks, QDIIs, QFIIs and other institutional investors.
Deregulation amidst innovation
Less than one per cent of the Chinese market capitalisation is currently open to foreign investors, and as such, China's markets are mostly insulated from the inflow-and-outflow of foreign funds. Nonetheless, the Chinese government has made it clear that it would like the industry to take a more pro-active approach towards risk management. It also expects financial professionals to manage investor expectations more effectively so as to reduce market volatility -- China's stock market surged 80 percent in 2009 after falling 65 percent during the global financial crisis of 2008.
"The government of China is currently adopting an approach of deregulation with more enforcement for the securities industry," comments Katherine Zhang, Head of Risk and Compliance at MANULIFE TEDA Fund Management Co. Ltd. "This means that they are open on some issues and actually encourage innovation in the securities industry while reducing regulatory limits. But they will also support those regulations by supervising and enforcing the current rules more completely."
A key feature of the IPARM China 2011 Summit will be its coverage of China's regulatory environment and how it will impact the continued development of the country's investment management market. It will also discuss measures to develop a whole-process embedded risk management framework to effectively identify, measure, evaluate, and control various risks in china's volatile investment management market.
Now in its fourth year, the IPARM China 2011 will also discuss the key theories and best practices behind using quantitative market risk identification models in China as well as effective data management strategies that can improve a firm's response to unforeseen market events and new regulations.
The IPARM China Summit 2011 will be held from 30 November to 1 December 2011 at Renaissance Shanghai Pudong Hotel, followed by a post-conference workshop on 2 December 2011. For more information, visit www.iparmchina.com or send an email to enquiry@iqpc.com.sg.
Media Contact:
Joyce Shi
Email: joyce.shi@iqpc.com.sg
Phone: +65-6722-9446
