Fifth Roundtable on Capital Market Reform in Asia

19-20 November 2003, Tokyo, Japan

The Round Table was established in 1999 in the aftermath of the so-called Asian financial crisis, and offers aan annual forum for discussion among Asian securities market regulators, experts from OECD countries, practitioners, scholars and officials from international organisations on specific topics of main interest from the viewpoint of capital market reform in Asia.  The Round Table this year discussed four main topics including Market failures and regulators, Future regulatory role of exchanges, Rebuilding confidence in markets, and Regional regulation in Asia.  Mr. Alan Cameron, former Chairman of the Australian Securities and Investments Commission, chaired the meeting which was attended by the following non-member economies: China, Hong Kong (China), India, Indonesia, Malaysia, the Philippines, Singapore, Sri Lanka, Chinese Taipei and Thailand.

Documentation

• Draft Agenda
• Draft List of Participants
• Summary Record

Session I: Market Failures and Regulators - Why are regulators always blamed for market failures?

Part A - The HK Penny Stocks Incident

• Hong Kong (Mr. Ashley Alder, Executive Director of the Corporate Finance of Securities and Futures Commission)
• Mr. Alan Cameron
• Ms. Qiumei Yang (Deputy Director General, Department of International Cooperation, China Securities Regulatory Commission)

Background information: 
-  The Report of the Panel of Inquiry on the Penny Stock Incident of September 2002
-  The Expert Group Report of March 2003
-  The Consultation on Proposals to Enhance the Regulation of Listing of October 2003

Part B - The Australian HIH Insurance Collapse Case

• Mr. Joe Longo (former ASIC Head of Enforcement and General Counsel, Corporate and Investment Bank (Asia) Deutsche Bank, AG)

Background information:
-  A brief Corporate History of HIH
-  Royal Commission Terms of Reference
-  The Regulatory Framework
-  Operational Statistics
-  Policy Recommendations
-  Report of the HIH Royal Commission
-  Executive summary
-  Chapter on regulation
-  Chapter on regulators

Session II: Consolidation And Demutualisation - What Strategies Should Exchanges Adopt for the Future?

• Mr. Ruben Lee (Managing Director, Oxford Finance Group)
  -  Consolidation and Demutualization: What Strategies Should Exchanges Adopt in the Future? (PowerPoint)
  -  The Future of Securities Exchanges (Background note)
  -  Changing Market Structures, Demutualization and the Future of Securities Trading (Background note)
• Hong Kong & New Zealand (Ms. Jane Diplock, Chairman of Securities Commission)
• Mr. Toshitsugu Shimizu (Executive Officer, International Affairs and Clearing & Settlement, Tokyo Stock Exchange, Inc.)
• Malaysia (Mr. Ranjit Ajit Singh, Director, Securities Commission)
• Mr. Tadashi Endo (Senior Financial Sector Specialist, Financial Sector Operations and Policy Department, World Bank)

Session III: Rebuilding Confidence in Markets

Part A - Prolonged Bear Market and its Aftermath

• Dr. Stephen Grenville (Visiting Scholar, ADBI and former Deputy Governor, Reserve Bank of Australia)
• Mr. John Thompson (Financial Counsellor, Directorate for Financial, Fiscal and Enterprise Affairs, OECD), Text: Conflicts of interest and the post-2000 market downturn
• Dr. Ghon Rhee (Professor of International Finance and Banking, University of Hawaii)
• Indonesia (Mr. Herwidayatmo, Chairman of BAPEPAM)
• Singapore (Mr. Mohammad Nizam bin Ismail, Deputy Director, Head of Market Conduct Policy Division, Market and Business Conduct Deparmtnet, MAS)
• Japan (Mr. Naohiko Matsuo, Director for International Financial Markets, Financial Services Agency)
• Contribution by Chinese Taipei (Background)

Part B. Governance of and by Institutional Investors

• Mr. Stephen Lumpkin,  (Principal Administrator, Directorate for Financial, Fiscal and Enterprise Affairs, OECD) Text: Governance of and by institutional investors, Background information
• Mr. Renato Limjoco (Lead Financial Sector Specialist, ADB)
• Korea (Mr. Jung-Hoon Park, Deputy Director, Securities Policy Division, Ministry of Finance and Economy)

Session IV: The Relevance of the European Experience on Regional Regulation to Asia - The Outlook for a Pan-European Securities Regulator

• Mr. Ruben Lee
• Hong Kong

Country/Economy Notes:

• China
• Chinese Taipei
• Hong Kong 
• Philippines
• Korea 
• Singapore 
• Thailand