A GLOBAL EVENT: The opening ceremony of the 2013 Boao Forum for Asia kicks off on April 7, attracting worldwide attention (GUO CHENG)

The upgrading process could bring massive layoffs.

"That's when the government should step up and re-educate workers for their next employment opportunities," he said.

Regulate or let loose?

A debate over whether to deregulate China's financial sector was put into the limelight at the 2013 BFA.

Deregulating the financial sector will spur innovation, which is badly needed for the country's budding financial market. However, it may also bring risks, similar to what caused the 2008 financial crisis, said panelists at the BFA.

"Generally speaking, China's financial sector is a developing, emerging and fledging one, which on the one hand requires less government regulation to stir innovation, and on the other calls for risk control," said Wang Yincheng, President of PICC Life Insurance Co. Ltd., one of China's largest insurers.

Zhang Dongning, deputy head of the Bank of Beijing, said that it's all about finding the right balance between deregulation and risk control.

"The government should step back from things that it shouldn't regulate," he said.

"Specifically speaking, the government should be responsible for three things: establishing a fair market environment, stipulating financial market regulations in line with the rule of economic development instead of out of the will of leaders, and finally awarding regulation-abiding enterprises and diminishing those that don't respect rules."

Rodney Ward, Chairman of Asia Pacific Global Corporate and Investment Banking with the Bank of America Merrill Lynch, called for more room for foreign banks in China's financial market.

"I'd like to see a much more dynamic financial market with the participation of foreign players," he said.

"I think private capital can play a more active role in the process of China's financial reform, if major international banks are allowed to collaborate with local banks in small and micro lending businesses, which China needs to promote," Ward told Beijing Review during an interview.

In terms of simmering risks, Ward expressed his optimism.

"I am absolutely overwhelmed by the extraordinary progress that China has made in reforming its banking market during the past decades," said Ward. "China has made remarkable progress by creating the current financial system from nothing. I believe in China's ability to adapt, and adapt fast.

"If anybody is going to find the right balance, it's got to be China."

Keynote Speech Highlights

Difficulties and challenges that face Asia:

- Transforming and upgrading its development model in keeping with the trend of the times;

- Making a concerted effort to resolve major difficulties to ensure stability in the region;

- Building on past success and forming new progress in promoting cooperation in Asia.

Measures to ensure that development in Asia and the rest of the world reaches new highs:

- Working together to uphold peace,

- Boosting cooperation as an effective vehicle for enhancing common development;

- Remaining open and inclusive.

(Source: Xinhua News Agency)

Boao Forum for Asia

The Boao Forum for Asia (BFA) Annual Conference 2013 was held between April 6-8 in Boao, south China's Hainan Province.

Under the theme Asia Seeking Development for All: Restructuring, Responsibility and Cooperation, this year's forum focused on topics related to "restructuring" as economists from home and abroad were invited to discuss China's past and future economic reforms.

A total of 54 panel discussions were held during the three-day event on topics including the global economic recovery, Asian integration, financial market deregulation, small and medium-sizes enterprises, the relationship between market and government, shale gas, expanding domestic consumption and property sector regulation.

In addition, the annual conference offered a chance for young leaders, CEOs of multinational companies, private sector executives and female leaders to meet face to face.

As a non-government, non-profit international organization, the BFA is the most prestigious and premier forum for leaders in government, business and academia in Asia and other continents to share their vision on the most pressing regional and global issues.

Initiated in 1998 by Fidel V. Ramos, former President of the Philippines, Bob Hawke, former Prime Minister of Australia, and Morihiro Hosokawa, former Prime Minister of Japan, the BFA was inaugurated in February 2001.

Boao is now the BFA's permanent site. It covers an area of 86 square km and has a population of about 27,000 people. Since 2002, the BFA has held its annual conference in Boao every April.

(Source: www.boaoforum.org)

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