1. Market Report
2. Seminars and events

 

As a Citigold client, you can keep yourself up-to-date on the latest market movements and outlook by attending one of our informative seminars. These seminars and events aim to enhance your financial knowledge.

8 March 2010, Mandarin Oriental Grand Ballroom, Kuala Lumpur

 

Speakers:             Shengman Zhang: Chairman of Asia Pacific and Citi Country Officer for Hong Kong     Mr. Shengman Zhang is Chairman of Asia Pacific and Citi Country Officer for Hong Kong. Mr. Zhang, a Chinese national, came to Citi from the World Bank where he was the Managing Director from 2001 to 2005 in charge of the Bank’s day to day worldwide operations. Prior to that, Mr. Zhang was vice President and Corporate Secretary of the World Bank and Executive Director for China between 1994 and 1995. Earlier, Mr. Zhang held a number of senior positions at the Ministry of Finance in China.            Click to view biodata

Speakers:             Dr. Shen Minggao: Chief Economist for Greater China Citi Investment Research and Analysis     Dr. Shen Minggao is Managing Director and Greater China Chief Economist for Citi Investment Research and Analysis, specializing in economic and market analysis. Dr. Shen served as Chief Economist at Caijing magazine between July 2008 and August 2009, and Chief Economist and Director of Economic and Market Analysis at Citibank (China) Co. Ltd between September 2005 and July 2008.            Click to view biodata

 

China is transitioning to a more sustainable growth model
“With China slated to be the world’s next economic superpower, there was certainly a lot of interest from our clients to learn about the market and investment opportunities. The immense level of information and knowledge we already had in-house on China through our experts, was destined to be well received,” said Paul Hodes, Head of Retail Banking Citibank Berhad.

 

Mr Shengmen Zhang’s views on China

Surplus government budget - China's government has accumulated much money by running the country efficiently, with tax revenues at 20% of GDP versus expenditure at only 14% of GDP annually.

Increased urbanization - As China's economy develops, there will be increasing urbanization as its rural population migrates to cities in pursuit of employment opportunities.

Increased consumer spending - Consumer spending has doubled in the last five years, from $593 per capita in 2004 to $1,290 in 2009. There is much potential for consumer consumption beyond economic growth, as China's private consumption rate is the lowest amongst Asian emerging economies, at 35% private consumption-to-GDP ratio vs. 50-70% for many other Asian countries.

Dr Minggao Shen’s views on China:

Renminbi (RMB) could become the world’s top-five currency by 2020 - China’s economic scales already meet the criteria of an international currency. But its share of trading volume is still tiny and would likely stage a major catch- up in the coming decade alongside continued above-average growth.

RMB may be hostage to political and financial conditions near-term - Rising political tensions with the US and financial concerns in Europe may delay revaluation. But these accentuate the need for the RMB to increasingly step outside China's borders, and we continue to expect a de-peg, if only partial, from the US dollar this year.

Regionalize before globalize - An international currency would require the home country to have trade deficits. China’s deficit with Asia sets the stage for the renminbi to be more widely used in Asia first. This would likely coincide with the trend of reserve currency diversification in the emerging world.

Growth model transition is a pre-requisite - Strong growth and stability would depend on a successful transformation to a more consumption-based growth model. Market-based macro policy making and financial market development are other important conditions for the currency to be welcomed abroad. New leadership after 2012 may be a catalyst for more intensified reforms.

Regional integration - Wider acceptance of the renminbi may accelerate the integration of Asian economies. Hong Kong’s peg to the dollar would likely end in the process, while a common currency may even be possible in Greater China.

Market implications - Renminbi and related FX trading volume could see exponential growth.
Intra-regional trade may accelerate. Financial market development could present great opportunities for investors. Outbound investment could accelerate with a stronger currency.

 

What do the papers have to say about the event?
Interested to know more about how you can participate in China?

 

 

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