The pace and scale of China's economic revolution continues to attract the attention of investors around the world. On June 21 and 22, many of China's important listed companies and policy makers met with leading investors in New York for the Institutional Investor * first annual China Investment Forum. Over 400 senior executives were represented at the event, which was co-hosted by China International Capital Corporation and Merrill Lynch at the Waldorf Astoria Hotel in Manhattan.
Keynote speakers and dignitaries included Zhang Enzhao, president of China Construction Bank; Levin Zhu, CEO of China International Capital Corporation Limited; Wang Jiming, vice chairman and president of Sinopec Corp; Wei Benhua, deputy administrator of the State Administration of Foreign Exchange; Chen Dagang, general counsel of China Securities Regulatory Commission; E. Stanley O'Neal, chairman and CEO of Merrill Lynch; and Kevan Watts, chairman of Europe, Middle East, Africa and Pacific Rim at Merrill Lynch.
As speakers at the Forum noted, over the past two decades China has been transformed from an economic backwater to a major force in the global economy. For years its growth rates have hovered around 9%, not only surpassing the industrialized nations but most emerging markets as well. In 2002, China surpassed the United States to become the largest recipient of foreign direct investment – a focus of much debate.
The Forum's audience consisted of, inter alia, Wall Street's leading analysts and traders from US hedge funds and money management firms, senior representatives of US corporate and public pension funds and endowments and foundations as well as family offices. The audience also included executives from major multinational corporations that have extensive business ties with China, investment bankers and senior managers from leading Chinese companies.
Through one-on-one meetings organized by the conference hosts, Chinese companies took the opportunity to meet and discuss their funding strategies with the institutional investors represented at the event. During the proceedings keynote speeches, sponsor-hosted workshops and panel discussions also provided delegates with informative debates on expected and current developments for China's financial markets in the year ahead.
Panelists explored the full range of ways in which foreign investors could participate in China's growth. This not only included portfolio investments in public companies but also private equity deals as well as direct investments in joint ventures with Chinese enterprises. Speakers indicated that the Chinese regulatory framework would continue to evolve, and there is growing emphasis on the rule of law rather than personal contacts and connections.
*Institutional Investor magazine is a wholly owned company of Euromoney Institutional Investor plc.
