On April 3rd, WU Xiaoling, Board ChairwomanDean, delivered a speech entitled “Development of Wealth Management MarketsCapital Markets,Amendments to the Securities Investment Fund Law”. The lecture was chaired by QI Bin, Director-General of the Research Center of the China Securities Regulatory Commission (CSRC).

Dean Wu started with the topic of wealth management markets becoming the new frontier of the Chinese financial industry of the future. She introduced the immature definitionsunderstanding of trust relations in China from the feudal idea that “all the landspeople belong to the emperor”demonstrated the vast potential for wealth management markets by explaining the growth of residentbusiness wealth.

She pointed out the existing problems in the wealth management markets, such as blurred legal relationship, regulatory principlesboundaries of asset trust. She indicated that we need to recognize the essence of insurance-linked insurance, bank financial products, equity investment fundstrust programs.

During her speech, Dean Wu focused on the introduction of the amendments to the Securities Investment Fund Law. She stated that, due to the different understandings of the definitions of investment fundsecurities as well as the regulatory boundaries, the amendments took a rather long time,the focus was on whether to include the investments on unlisted equity. In spite of some regrets, in her view, progresses have been made. Non-public offerings were included in the scope of amendments.

Lastly, from the point of view that asset management markets can drive the growth of the capital market, she envisioned the synergized development of both public offeringsprivate offerings in the capital markets.

When talking about the division of regulatory responsibilities, she indicated that CSRC’s supervision over VCsPEs could realize unified regulatory rules for multilevel capital markets. The direction of the reform of the National DevelopmentReform Commission (NDRC) should be towards strengthening macro-controlsreducing intervention into trivial issues. Dean Wu concluded her speech by stating that “legislation is intended to promote, not to hinder the development of the market,a perfect law system makes the market work better”.

Dean Wu enjoys an extremely high reputation in the industryacademic circles. The speech attracted nearly 500 attendees to the venue.

The Tsinghua PBCSF Financiers Forum, organized by the Tsinghua University PBC School of Finance, is a high-end serial forum focused on the financial industry. The event stays up-to-date with current affairshot topics. Industrial leadersprominent scholars are invited to introduce best practicesshare industrial views. As part of the event, the Capital Markets Lectures includes 14 speeches delivered by experts from the capital markets, in hopes of imparting the theorypractice of capital markets to more students. This speech was the fifth in the series, with previous guest speakers including QI Bin, Director-General of the China Securities Regulatory Commission Research CenterDean of the Beijing SecuritiesFutures Research Institute, WANG Dongming, Chairman of CITIC Securities, CHU Gang, Managing Director of China International Capital Corp.,HU Jizhi, President of Guosen Securities.