Financial reform, financial risks management and further opening up of the market have been put in the spotlight of China's ongoing "two sessions," and these hot topics are also attracting much attention overseas.

China's financial reforms will be able to create a financial market that could rival the U.S. and European markets, but how will global investors think of it? What does the rise of the Chinese market mean to foreign investment bank analysts?

Financial professionals are considered to be "golden collars." In this highly devoted and rewarded profession, will a Chinese background be a plus? As underlying risks and opportunities coexist, what uncertainties will confront China's finance in the future?

Xinhua correspondents have interviewed economists and company senior executives to hear what they have to say about China's financial reform.

DIALOGUE 1

Xinhua: Financial reform is a heated topic being discussed during China's ongoing "two sessions." Over the past year, China has adopted a series of financial reform measures, including establishing the Shanghai Free Trade Area and accelerating the internationalization of Renminbi. What are your thoughts on China's financial reform and its global effect?

Gu Qingyang, Associate Professor at the Lee Kuan Yew School of Public Policy, National University of Singapore, said China's financial reform affects the world primarily in two aspects: one is real economy, the other financial market.

"The success of the reform will contribute to healthy development of Chinese real economy, and in turn lead and drive regional and global economy," he said.

"Meanwhile, reform directly touches upon global finance sector, which will bring new development opportunities to offshore financial institutions," he added.

DIALOGUE 2

Xinhua: China's financial reform is being pushed forward, and financial risks also need to be closely observed. How do you evaluate the financial risks China faces amid the volatility of the emerging market?

Haibin Zhu, J.P. Morgan Chief China Economist, said China maintained a good performance in the latest round of volatility of the emerging market.

"China has three advantages in preventing and controlling financial crisis: first, debt levels are kept relatively low; second, high savings ratio facilitates growth of domestic investment; third, with China's huge foreign exchange reserves, People's Bank of China has strong capacity in averting liquidity risks," Zhu said.

He noted the Chinese financial market also faces certain risks. For instance, debt or leverage ratios witness a significant rise, and part of credit in the "shadow banking" sector flows to local governments, property developers and industries with excess capacity.

Also, financially insufficient local governments are exposed to default risks, he told Xinhua.

Jayanta Datta, CEO and research analyst at Independent Insights Group based in New York, said China has non-performing loans risk, real estate risk and asset price risk.

"Each country has its separate risks, and different countries have different policies," he said. "In general, the Chinese government is taking a number of steps to address those issues and reduce those risks."

DIALOGUE 3

Xinhua: China's financial deepening might boost its investment overseas. As the head of a corporation that has business with China, do you welcome big shareholders from China, and in which fields do you think your country needs China's capital most?

Robert Bodocs, Vice President of the Hungarian Investment and Trade Agency (HITA) told Xinhua that the value of Chinese business investment in Hungary has already reached approximately 3 billion U.S. dollars.

After settling in Hungary, those companies had kept their workers instead of downsizing its workforce, and created new jobs, he said.

Bodocs cited Wanhua, a Yantai-based chemical manufacturer, which bought out Hungarian chemical manufacturer BorsodChemin in 2011 and now provides 2500 of the 5000 jobs created overall in Hungary by Chinese firms.

Manufacturing is the area in which Hungary most needs investment, Bodocs said, especially in the automotive and electronics industry. But he also acknowledged that all sectors would be open to Chinese investors.

Bodocs also welcomed Chinese investment in the shared service centers of Hungary's large companies, which he said could help local employment.

Engr. Kola Balogun, Chairman/CEO of Momas Electricity Manufacturing in Nigeria said since their cooperation with Chinese partners, the rate of his company's development has been "astronomical."

"They are very forward-looking and they try to understand your own pecuniary," he said.

But he also pointed out that whatever are bringing into his country, one thing that has to be ensured is that the technology should in one way or another be transferred bit by bit to develop his own country too.

"It's not that they should bring complete solution we don't know what is inside the box, we want to be able to dissect the box and see what exactly is inside for us to actually develop our mental intellectual capability," he said.

DIALOGUE 4: The financial sector is a high-paying industry, and employs the elites of society. Do you think that a good command of the Chinese language and a working experience in China could be an advantage in job-hunting or career-building?

Jack Liu, Senior Vice President at Chardan Capital Markets, said, "If I had a working opportunity in China, I would definitely be interested."

Nowadays, it is not rare anymore to find someone who has a good command of both English and Chinese, but relevant working experience in China is an advantage in finding a job in the U.S. financial sector, Liu said.

If an American company wants to tap into Chinese markets, it does not only need Chinese partners, but also an employee who can understand those markets and business, Liu added.

Cravero Davide, Exotic Derivative Trade Support at Royal Bank of Scotland, told Xinhua that if he had been offered the same post in China, he would like to try as his father is also in China running an Italian restaurant.

He thinks that in the finance sector, what really matters is your cleverness and your ability to solve problems. Yet knowing Chinese is still a plus, especially in banks that have Chinese business.

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