3rd Annual Symposium
on EU-Asia Relations in Financial Services
Promoting Convergence and Investments
in EU-Asian Financial Markets
26-27 May 2016, The Westin Beijing Financial Street

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About the 3rd Annual Symposium on EU-Asia Relations in Financial Services
The 3rd edition of the EU-Asia Financial Services Symposium series was co-organised with CEPS
and Afore Consulting in May 2016 in Beijing with the theme ‘Promoting Convergence andInvestments in EU-Asian Financial Markets’.
The symposium was very well received with almost 120 attendees from over 70 organisations,
including 46% policy makers/ public officials, 12% academics and 42% industry practitioners from
Europe and Asia. Among almost 40 senior speakers we had Asian Development Bank (ADB), Bankof Japan (BOJ), Chinese Academy of Social Sciences (CASS), China Securities Regulatory
Commission (CSRC), European Banking Authority (EBA), European Central Bank (ECB), European
Commission, European Investment Bank, European Stability Mechanism (ESM), Financial
Services Agency of Japan (FSA), Federal Financial Supervisory Authority of Germany, Securities
and Futures Commission (SFC), Hong Kong Monetary Authority (HKMA), The People’s Bank of
China (PBC), Shenzhen Stock Exchange (SZSE) and many other leading financial institutions.

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The symposium program ranged across several topics including the fundamental review of the
trading book, corporate bonds in Asia, Fintech revolution, modern payments, Asia’s stock markets
and shadow banking and asset management in Asia.

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We highly appreciated the support by the Lead Sponsors - J.P. Morgan and Moody’s, theSupporting Sponsors - PwC and Thomson Reuters, the Regional Academic Partners - National
University of Singapore (NUS) and International Monetary Institute of Renmin University of China(IMI) as well as the Institutional Partners - GIZ.
We have received very positive feedback from the stakeholders including speakers, delegates,
sponsors and co-organisers. The event was complimented most on its in-depth, timely andinteractive dialogue and exchange among the EU and Asian senior representatives throughout thesessions.

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List of Participating Organisations in 2016:
Abacus Corporate Finance Limited
Afore Consulting
Asian Development Bank (ADB)
Asian Infrastructure Investment Bank (AIIB)ASIFMA
BaFin
Bank for International Settlements (BIS)Bank of China
Bank of Japan (BOJ)
Barclays
Bloomberg
BNP Paribas
BNY Mellon
British Consulate-General
British Embassy
Central University of Finance and Economics
Centre for European Policy Studies (CEPS)
China Institute for Reform and Development
China Securities Regulatory Commission (CSRC)
Chinese Academy of Social Sciences (CASS)CITIC Securities
City of London
Department of Finance, Canada
Depository Trust & Clearing Corporation (DTCC)
Deutsche Bank
Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH
Embassy of the Federal Republic of Germany
European Banking Authority (EBA)
European Central Bank (ECB)
European Commission
European Investment Bank (EIB)
European Stability Mechanism (ESM)
European Union OfficeFinancial Services Agency, Japan (FSA)
Freshfields Bruckhaus Deringer
FTI Consulting
Goldman Sachs
Government of Canada
Hong Kong Exchanges & Clearing Limited (HKEX)
Hong Kong Interbank Clearing Limited
Hong Kong Monetary Authority (HKMA)
Indonesia Financial Services Authority (OJK)
Infocomm Investments
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List of Participating Organisations in 2016 (Con’t):
ING
International Monetary Institute (IMI), Renmin University of China
Italian Embassy in Beijing
John Hopkins University
J.P. Morgan
Kanbawza (KBZ) Group of Companies
KBZ Bank
Ministry of Economy and Finance, Cambodia
Monetary Authority of Singapore (MAS)
Moody's Investors Service
Národná banka Slovenska
National Association of Financial Market Institutional Investors (NAFMII)
National Bank of Kazakhstan
National University of Singapore (NUS)
Permanent Representation of France to the EU
PwC
Securities & Exchange Commission, Thailand (SEC)
Securities and Futures Commission (SFC)
Seoul Metropolitan Government
Shenzhen Stock ExchangeStandard Chartered Bank
State Street Global Advisors
The Boston Consulting GroupThe Norinchukin Bank
The People's Bank of China (PBC)
The University of Hong Kong
Thomson Reuters
Tianjin Free Trade Zone Administrative Committee-Financial Service Office
Zhejiang University
For More Information:
For more about the 2nd EU-Asia Financial Services Symposium in 2016:www.asifma.org/eu-asia2016
For enquiries including participation and sponsorship packages for 2017, please email:Michelle Cheung, mcheung@asifma.org, +852-2531-6533 (ASIFMA)
Nickolas Reinhardt, Nickolas.reinhardt@aforeconsulting.eu, +32 2 588 1306 (Afore)

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3rd Annual Symposium
on EU-Asia Relations in Financial Services
Final Program
THURSDAY 26th MAY 2016
Discussions and Dinner________________________________________________________________________

Venue: The Westin Beijing Financial Street (Treasury III, Level 2)
08:30-09:00

Check-in

09:00-09:05

Welcome and Introduction
Karel Lannoo, CEO, CEPS

09:05-09:25

Opening Keynote
Hans-Dietmar Schweisgut, Ambassador of the European Union to China

09:25-09:45

Introductory Keynote
Andrea Enria, Chairperson, European Banking Authority (EBA)

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09:45-10:45

Session 1: Fundamental Review of the Trading Book (FRTB): What Implications for
Banks’ Business Models?

The financial crisis raised questions as to the level of capital required against banks’ trading book
exposures. In line with the G20 leaders’ commitments, the Basel Committee on Banking
Supervision (BCBS) proposals on FRTB aim at readdressing the allocation of regulatory capital
between the banking and trading books by introducing “presumptive lists”, and making banks
properly account for the market risk of their trading activities on a desk-by-desk basis. The FRTB
proposal marks a shift from the use of the value-at-risk (VAR) to expected shortfall (ES) in thebanks’ internal models, so as to better capture tail risks. It also introduces extended “liquidity
horizons” for each risk factor category and prescribes re-calibrated risk weights for the buckets ineach asset class. Investment banks argue that these measures will most likely cause capitalincreases in several business lines, such as high-yield corporate and sovereign debt, small-cap
equities, securitized products as well as commodities and foreign exchange hedges, with broad
implications for market liquidity.
Are these measures sufficient to ensure the resilience of banks to volatile market conditions? Will
these measures force banks to engage less in principal trading activities due to increasing costs?
Are these costs going to be transferred to issuers and/or end investors? Is market liquidity going
to be impacted, and in which ways? Will the competitiveness of global banks be affected?
Speakers:
 Andrea Enria, Chairperson, European Banking Authority (EBA) Toshio Tsuiki, Deputy Director General, Financial System and Bank Examination Department,
Bank of Japan (BOJ) Wei Wang (Steve), Managing Director, Head of Fixed Income Research, Bank of China
International (BOCI) Geng Xiao, Professor of Practice in Finance and Public Policy, School of Business and Faculty ofSocial Sciences, University of Hong Kong (HKU)
Moderated by: Karel Lannoo, CEO, CEPS
10:45-11:10

Coffee BreakPage | 8

11:10-11:30 Presentation of the Policy Report on Improving the Investor Base for Local
Currency Bond Markets in China, India and Indonesia which was prepared by theCentre for European Policy Studies (CEPS), within the framework of the Emerging
Market Dialogue on Finance (EMDF), which is implemented by the German Agency
for International Cooperation (GIZ). With contributions from the Research Bureauof the People’s Bank of China, the Observer Research Foundation in India, and theEconomic Research Institute for ASEAN and East Asia.
Introduced by Achim Deuchert, Director, Emerging Markets Dialogue on Finance(EMDF), German International Cooperation (GIZ)
Presentation by Diego Valiante, Head of Financial Markets and Institutions, CEPS
11:30-12:30 Session 2: Corporate Bonds in Asia: Steps Towards an Integrated Regional Market?
(Topic 1)
Since 2008, corporate bonds markets have grown rapidly, though unevenly, across Asia. Increasing
demand from foreign investors in ‘search for yield’, as well as a number of regulatory initiatives atnational and regional level, have fuelled corporate issuance. Asia’s corporate bond markets arehighly fragmented and bond transactions are very limited because of capital and currency controls,
as well as regulatory impediments and lack of infrastructure. Following up on the case studies for
China, India and Indonesia, as well as the general findings from the poster presentation, the panel
discussion will also discuss developments in the EU. The EU is also looking at the balance of equity
vs debt issuance, how cross-border debt corporate financing could be improved and opened to awider set of companies.
Can harmonisation of common standards or mutual recognition of issuing procedures, settlement
process, listing and disclosure, documentation, secondary market practices, among others, be agame changer? Which reforms are mostly needed for the corporate bonds to become a viable
non-bank funding source? Which incentives would result in broadening the investor base? How tomake secondary markets more liquid, transparent and interconnected? Which concrete initiatives
have been taken towards deepening integration in the region, e.g. mutual recognition ofprospectus requirements? What can be learned from EU and US experience in their efforts tostimulate and integrate corporate bond markets?
Speakers:
 Yu Li, Director, Financial Markets Division, Research Bureau, The People's Bank of China (PBoC)
 Pierre Van Peteghem, Group Treasurer, Asian Development Bank (ADB) Katie Rowbottom, Head of FI eTrading APAC, Bloomberg
 Mark Austen, CEO, ASIFMA
Moderated by: Steve Garton, Editor, IFR Asia, F&R Financial Fixed Income, Thomson Reuters

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12:30-13:00 Small Group Sessions on Topic 1
Participants will be divided into small groups in order to discuss Topic 1/2 in greater detail. Withineach group, a Discussion Leader will moderate and ensure that the key views on the topic are
explored and that answers to specific questions are provided; a Rapporteur will keep record, andwill then convey this back to the Rapporteurs’ meeting.
Discussion leaders: Lorenzo Bencivelli, Financial Attaché, Embassy of Italy to the People’s Republic of China, Bankof Italy representative Mark Austen, CEO, ASIFMA Diego Valiante, Head of Financial Market and Institutions, CEPS
Rapporteurs: Ashley Lee, Manager, Policy and Regulatory Affairs, ASIFMA Cosmina Amariei, Researcher, CEPS
 Linde Jing, Research Assistant, International Monetary Institute (IMI), Renmin University ofChina
 Yin Chen, Research Assistant, International Monetary Institute (IMI), Renmin University of
China
13:00-14:00

Buffet Lunch

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14:00-15:00

Session 3: The FinTech Revolution: How Will It Reshape Finance? (Topic 2)

Innovative financial technologies are changing the way we look at financial markets. Blockchain
technologies, robot advisory services, algorithms-based portfolio management, mobile banking
and many other tools are re-shaping the whole financial industry (banking, investment andinsurance) and claim to produce disruptive effects in market structure. Data analytics (e.g. risk
management), IT security and infrastructure for capital market transaction, bank credit andcorporate financial information, personal financial management are only some of the areas where
new communication and information technologies are only some of the areas affected by thisrevolution.
How are financial technologies developing in Europe and Asia? What role can fintech play for
financial inclusion? Are they capable to deliver disruptive changes in the plumbing of the financial
system? Are current financial institutions able to take on the challenge or will newcomers enter
the market and quickly gain market share? Who are the main competitors of traditional financial
institutions and how the latter will change their business model to cope with this new influx ofcompetitive pressures? Are European and Asian regulators and supervisors following properly thisphenomenon? What are the major challenges in supervising these new tools and market players?
Speakers:
 Benedicte Nolens, Senior Director & Head of Risk and Strategy, Hong Kong Securities andFutures Commission (SFC) Alex Lin, Head of Infocomm Investments Pte Ltd , subsidiary of Infocomm Development
Authority of Singapore
 Ben Shenglin, Professor of Banking & Finance, Dean, Academy of Internet Finance, Zhejiang
University
 James Chang, Managing Partner, China Financial Services Consulting Leader, PwC
Moderated by: Nickolas Reinhardt, Director, Afore Consulting

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15:00-15:45

Small Group Sessions on Topic 2

Participants will be divided into small groups in order to discuss Topic 1/2 in greater detail. Withineach group, a Discussion Leader will moderate and ensure that the key views on the topic are
explored and that answers to specific questions are provided; a Rapporteur will keep record, andwill then convey this back to the Rapporteurs’ meeting.
Discussion leaders: Ben Shenglin, Professor of Banking & Finance, Dean, Academy of Internet Finance, Zhejiang
University
 Nickolas Reinhardt, Director, Afore Consulting Wayne Arnold, Executive Director – Head of Policy and Regulatory Affairs, ASIFMA
Rapporteurs: Willem Pieter de Groen, Research Fellow, CEPS Ashley Lee, Manager, Policy and Regulatory Affairs, ASIFMA Linde Jing, Research Assistant, International Monetary Institute (IMI), Renmin University ofChina
 Yin Chen, Research Assistant, International Monetary Institute (IMI), Renmin University of
China
15:45-16:00

Coffee break

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16:00-17:00

Session 4: Modern Payments for the 21st Century - How Will The Landscape
Look Like?

The payment infrastructure is critical to the functioning of the economy. Payments ecosystems are
inherently complex, with numerous market players, such as operators of national payment
infrastructures, cards schemes, banks and non-banks, B2B and P2P payments providers,processors and merchant acquirers, payment gateways and terminals etc. Market, regulatory andtechnological/digital forces are currently transforming the payments landscape. In the recent
years, a growing number of fintech companies and non-bank payment providers with alternative
business models have emerged. The incumbents have now strategic choices to make: to compete
and/or collaborate. Moreover, payment data analytics is presenting significant opportunities toenhance the value proposition and explore multiple revenue streams.
In the EU there is now in place a new regulatory framework for payments: capping the fees for
credit and debit card payments - similar to Australia. In addition, the revised Payment Services
Directive (PSD2) widens the scope of the PSD by covering new services and players, enabling theiraccess to payment accounts. Japan, Korea and other Asian jurisdictions have also developed theirown regulatory frameworks for non-bank payments. How will the established payment
infrastructure networks going to react to the rise of new payment solutions (mobile, contactless,instant payments, blockchain) and market trends (consumer/retail vs wholesale/corporate)? Howshould policy makers balance competition against the integrity of the payment system? Should
any policy response be regional or global?
Speakers:
 Yun Dong, Deputy General Secretary, Research Center of Payment and Settlement, Instituteof Finance and Banking, Chinese Academy of Social Sciences (CASS) Esmond Lee, Executive Director, Financial Infrastructure, Hong Kong Monetary Authority(HKMA) Helmut Wacket, Head Market Integration Division, DG Market Infrastructure and Payments,
European Central Bank (ECB) Nellie C. Dagdag, Managing Director, Global Industry Relations, DTCC
Moderated by: Dora Neo, Director, Center for Banking & Finance Law, National University ofSingapore (NUS)
17:00-18:00

Rapporteurs Meeting (Discussion Leaders and Rapporteurs only)

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THURSDAY 26th MAY 2016
Discussions and Dinner________________________________________________________________________

Venue: The Westin Beijing Financial Street (Treasury I, Level 2)
19:00-19:15

Cocktail Starts

19:15-19:20

Introduction
Nickolas Reinhardt, Director, Afore Consulting

19:20-19:45

KeynoteWu Xianting, Deputy Director, Financial Market Department, The People’s Bank ofChina

19:45-20:10

KeynoteJonathan Taylor, Vice-president, European Investment Bank

20:10-20:30

In Conversation With Jing Ulrich, Managing Director and Vice Chairman, Asia
Pacific, JPMorgan Chase (by Mark Austen, CEO, ASIFMA)

20:30-21:30

DinnerPage | 14

FRIDAY 27TH MAY 2016
Discussions________________________________________________________________________

Venue: The Westin Beijing Financial Street (Treasury III, Level 2)
08:15-08:45

Check-in

08:45–09:00

Presentations & Discussion of the Main Findings of the Break-out Session
Discussions on Topic 1 and Topic 2
by Diego Valiante, Head of Financial Markets and Institutions, CEPS

09:00-09:05

Introduction of Keynote Speakers
Wei Benhua, Senior Director, IMI Academic Committee, Renmin University of
China

09:05–09:20

KeynoteBenjamin Angel, Director, Directorate Treasury and Financial Operations, DG
ECFIN, European Commission

09:20–09:35

KeynoteQi Bin, Director-General, Department of International Affairs, China Securities
Regulatory Commission (CSRC)

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09:35–10:45

Session 5: Asia’s Stock Markets: Does Opportunity Still Await?

Asia’s stock markets have been an important source of funding for corporates and their potential
in terms of greater capacity and liquidity is still strong. Recent volatility in some markets haveraised many questions about how sustainable is the current market structure and what needs tobe done. Is there room for improvement in areas such as securities regulation, corporate
governance, products and market infrastructure?
What can the State do to improve diversification of investors in the stock markets? What is reallydriving price volatility in stock markets? What can Asia learn from Europe (if anything) about freemovement of capital and regulation of markets? Is the pricing based on idiosyncratic factors
rather than economic and corporate fundamentals? Should governments intervene during times
of extreme volatility, and how? Once in place, how quickly can exceptional measures be lifted?
Should further integration of equity markets across Asian countries be actively pursued at thisstage?
Speakers:
 Fuzhong Liu, Vice Director of Strategy and International Relations, Shenzhen Stock Exchange(SZSE)
 Tae Yoo, Managing Director, Head of Client & Marketing Services, Hong Kong Exchanges andClearing (HKEX) Alexander den Ruijter, Senior Risk Officer, European Stability Mechanism (ESM) Wang Jiangyu, Fellow and Associate Professor, Centre for Banking & Finance Law, National
University of Singapore (NUS) Daniel Gros, Director, CEPS
Moderated by: Diego Valiante, Head of Financial Markets and Institutions, CEPS
10:45-11:30 Coffee BreakPage | 16

11:30-12:45 Session 6: Shadow Banking and Asset Management in Asia: Which Way Forward?
Addressing the risks in the shadow banking system remains one of the core elements on the G20
agenda. Being outside the formal banking sector is associated with a weak safety net, such as
guaranteed deposit insurance schemes or central bank liquidity/lender of last resort facilities.
While the size of the shadow banking sector in Asia is smaller than in the US or Europe, it is
growing at a very quick pace as it relies on a very simple business model. The activities of the nonbank financial institutions (NBFIs) in Asia are predominantly domestic and involve the offer offinancial services to individuals and firms that may lack access to “traditional” sources of financeor simply look for more rewarding investment opportunities. Local and foreign asset managers areoften direct competitors. The industry (particularly in Asia) is expected to compete directly withtraditional banking activities, as a growing segment of medium-high net worth individuals, as well
as new pools of insurance and retirement assets under management, are increasingly using these
services. At EU level, a number of initiatives were taken in order to monitor and address the risks
inherent to the activities carried outside the formal banking sector, such as transparency
requirements.
What is the nature of ‘shadow banking’ in Asia and how does it differ from Europe? Is ‘shadowbanking’ the correct terminology to describe the phenomenon? How does it relate to the formalbanking sector? Does it pose a serious threat to financial stability in the short or long-term?
Should regulators increase their oversight and, most importantly, how? Are Asian and European
asset managers delivering better investment opportunities via shadow banking tools?
Speakers:
 Shunsuke Shirakawa, Deputy Commissioner for International Affairs, Financial Services
Agency, Japan (FSA) Peter Kruschel, Director, International Directorate, Federal Financial Supervisory Authority,
Germany Michael Taylor, Managing Director, Chief Credit Officer Asia Pacific, Moody's Investor’sService Qin Xu, Partner and Managing Director, The Boston Consulting Group
Moderated by: Karel Lannoo, CEO, CEPS
12:45-13:00

Closing Remarks
Karel Lannoo, CEO, CEPS
Mark Austen, CEO, ASIFMA

13:00-14:00

Closing Buffet Lunch

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