Tuesday, June 20, 2017

Announcing Symposium "On the Internationalization of the RMB: Risks and Challenges Ahead" Organized by the Queen Mary University of London Centre for Commercial Law Studies and the East China University of Political Science and Law



It is my great pleasure to announce an upcoming "Symposium On the Internationalization of the RMB: Risks and Challenges Ahead." The Symposium is presented by the Queen Mary University of London Centre for Commercial Law Studies in collaboration with the East China University of Political Science and Law, in association with the Institute for Global Law, Economics and Finance. It was organized by Professor Rodrigo Olivares-Caminal and takes place on 27 June 2017 at the Center for Commercial Law Studies.

The Symposium Concept Note and Program follows.




Symposium on the Internationalization of the RMB: Risks and Challenges Ahead

The economic literature has underlined that an international currency is one that is used and held beyond the borders of the issuing country, not merely for transactions among the country’s residents but also, and importantly, for transactions among non-residents. Also, an international currency usually functions as a unit of account, a means of exchange and a store of value not only within but also outside the borders of the issuing country.

Usually, from a theoretical point of view, the benefits that a country can get by issuing an international currency are: (1) transaction cost reduction; (2) possibility for firms and financial institutions to issue bonds denominated in their own currency, which in turn can expand the country financial market and allow issuers to enjoy lower borrowing costs; (3) international seigniorage arising from the fact that the currency circulates abroad; and, (4) greater economic power of the country in the international context.

However, there are also certain costs associated with the internationalization of a currency, such as: (1) currency appreciation; (2) external constraints imposed on domestic monetary autonomy; and, (3) greater global policy responsibility.

The RMB is already an international currency, however, additional challenges remain to convert it into an international means of reserve and obtain a leading place in international finance transactions. Some economists have argued that the benefits for China in having the RMB as an international currency overcome the costs, above all in the long run. In particular, China could benefit from reduced exchange risks, significant development of its financial market and consequently growth of its firms and financial institutions.

Apart from the political implications that the Chinese Government will have to consider, in order to make the RMB a fully international currency, a number of legislative reforms. Therefore, the focus of the symposium would be on the legislative reforms impacting the financial system and the capital markets and how to address these reforms from the most efficient way to maximize the benefits and minimize any possible negative implications. The aspects on which the symposium will focus are:
(1) a complete liberalisation of inward and outward capital flows with the consequent free access of foreign institutions to the domestic markets;
(2) creation of a government and corporate bond market;
(3) increase in the number of private financial institutions; and, (4) reshaping of the banking and financial supervision.

These reforms need the adoption of an adequate and modern regulatory framework. From this point of view, the symposium aims at contributing to the legal and economic debate about the features of the Chinese financial regulation and supervisory structure of the next decades will have to have by providing some inputs towards its shaping.

The symposium will take place on 27 June 2017 in the City of London, at Queen Mary University of London’s campus situated in Lincoln’s Inn Fields (67-69 Lincoln’s Inn Fields, London, WC2A 3JB). Registration will start at 8:30hs and the symposium will finish at 16:00hs.

PROGRAMME 

8.30
Registration
9.00
Welcome Remarks
Prof. Spyros Maniatis (QMUL) Professor Li Weifang (ECUPL) and Prof. Rodrigo Olivares-Caminal
9.15
Opening Remarks
Guo Chentao
Counsellor, Policy Section Director of the Chinese Embassy in London
9.30
Key Note Speech
The Hon. Mr Justice Blair
Session I 10.00- 11.00
Internationalization of the RMB: a Western Perspective
Chair: Professor Rodrigo Olivares-Caminal (QMUL)
One Belt One Road and RMB Internationalization—A Strategic Alliance
Professor Larry Catá-Backer Pennsylvania State University
An International Currency in Progress: Prospect and Challenges for the Renminbi
Dr. Paola Subacchi
Chatham House

Internationalization of the RMB: An analysis of legal developments
Charles Proctor Fladgate LLP
11.00- 11.30
Coffee Break
Session II 11.30- 12.30
Internationalization of the RMB: a Chinese Perspective
Chair: Dr. Andrea Miglionico (University of Reading)
Internationalization of the RMB: The Chinese Lawyer’s Practice
Li Zhiqiang and Qu Long Jin Mao Partners
Internationalization of the RMB and China’s Seigniorage
Dr. Na Li ECUPL
3|Page
RMB Internationalization, Legitimacy, Research Topics, Methodologies and Network
Associate Professor Huachun Guo
ECUPL
12.30- 1.30
Lunch
Session III 1.30- 2.40
Policy Reinforcement: Reshaping Banking and the Capital Markets
Chair: Dr. Michael Waibel (University of Cambridge)
The Development of Bond Markets: Risks and Challenges
Professor Rodrigo Olivares-Caminal and Dr. Andrea Miglionico Queen Mary University of London
The Role of the Authorities in Bank Resolution
Dr. Marco Bodellini University of Bologna
Cross-border Issues in Home and Host Supervision and Resolution
Professor Dalvinder Singh University of Warwick
Status and Implications of Korean shadow banking regulations: A Chinese Twist
Professor Gi Jin Yang
Chonbuk National University, School of Law
2.40- 3.00
Concluding Remarks



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