On September 19, 2015, the 5th South China Business & Law Forum  themed on "Asset Management at Chinese Financial Institutions: Developments and Legal Issues" convened at the Shenzhen Stock Exchange.

The seminar was organized by the South China International Economic and Trade Arbitration Commission (Shenzhen Court of International Arbitration, hereinafter referred to as the "SCIA"). The event garnered support from institutions, including the Supreme People's Court (SPC)'s First Circuit Court and Civil Adjudication Tribunal No 4, the Guangdong Provincial Government's Financial Office, the Administrative Office of the China (Guangdong) Pilot Free Trade Zone, the China Securities Regulatory Commission's Shenzhen Regulatory Bureau, the Shenzhen Stock Exchange, the Qianhai Shekou Free Trade Area Administration of China (Guangdong) Pilot Free Trade Zone and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen. Co-organizers included the Free Trade Zone Financial Arbitration Center, the Shenzhen Securities and Futures Dispute Resolution Center, the Hong Kong Financial Dispute Resolution Center, and the Peking University Financial Law Research Center.

The conference attracted approximately 600 participants, including executives and legal professionals from over 400 financial institutions, judges, arbitrators, mediation experts, scholars, lawyers, and regulatory officials such as representatives of the China Securities Regulatory Commission and the Shenzhen Stock Exchange.

The conference, chaired by Dr. Liu Xiaochun, President of the SCIA, commenced with welcoming remarks from Liu Haibo, Assistant General Manager of the Shenzhen Stock Exchange and a welcome address from Tian Fu, Director of the Qianhai Shekou Free Trade Area Administration.

Tian emphasized the rapid and healthy development of Shenzhen's financial industry in recent years, highlighting its pivotal role in supporting economic development. He underscored the importance of fostering an open and liberal legal environment to promote Shenzhen's transformation into an international, modern, and innovative city. Tian expressed hope that the SCIA will take the establishment of the Free Trade Zone Financial Arbitration Center as an opportunity, further strengthen professionalism and internationalization, enhance credibility, and contribute to creating a more favourable environment for financial innovation and an international business environment based on the rule of law.

During the opening ceremony, Liu Guixiang, Member of the Special Committee of the SPC and President and Director of the Executive Board of the First Circuit Court of the SPC, emphasized the court's commitment to adjudicating and guiding financial cases and staying abreast of industry developments and associated legal issues. He highlighted the importance of arbitration institutions in resolving financial disputes and stressed the court's support for arbitration and mediation mechanisms in resolving capital market and financial disputes.

The conference featured thematic discussions on "Innovation and Development of China's Asset Management Business Model" and "Risk Prevention and Dispute Resolution in China's Asset Management Business."

Before the commencement of the second session, Gao Xiaoli, Chief Judge of the First Circuit Court of the SPC, shared the latest developments in judicial review of arbitration.

In his closing speech, Anthony Neoh, SC, Member of the SCIA Council, Former Chairman of the Hong Kong Securities and Futures Commission and Co-Chairman of the Asian Academy of International Law, reviewed the development of China's financial markets and underscored the crucial role of law and regulation. 

In recent years, the SCIA has innovated dispute resolution models around economic hotspots and industry developments, and has been deeply engaged in the arbitration services of the Chinese capital market, providing domestic and international investors with a preferable dispute resolution environment that is more aligned with international markets and offering professional arbitration services that meet international standards.

The SCIA will continue to uphold the principles of independence, impartiality, and innovation, and will persist in its internationalization and professional development based on cooperation between Guangdong, Hong Kong SAR, and Macao SAR. It strives to provide the best services to a wide range of market participants.

Liu Haibo, Assistant General Manager of the Shenzhen Stock Exchange, expressed that "Effective communication and consensus-building are essential to resolving specific issues in capital market legal practices."

Tian Fu, Director of the Qianhai Shekou Free Trade Area Administration, highlighted that "Creating a more open and liberal legal environment is an essential part of Shenzhen's construction as an international, modern, and innovative city."

Liu Guixiang, Member of the Special Committee of the SPC and President and Director of the Executive Board of the First Circuit Court of the SPC, underlined that "Ensuring that justice is accessible to the masses and that they perceive fairness and justice in every judicial case is crucial."

Yao Jun, General Counsel of Ping An Group, said "The asset management industry has entered a new era of competition, innovation, and diversified operations.

Zhou Song, Director of Interbank Finance Headquarters and General Manager of the Asset Management Department of China Merchants Bank, emphasized that "Commercial banks urgently need to innovate and transform to break through industry barriers and overcome asset management challenges."

Xie Hui, Head of the Legal Compliance Department of Ping An Asset Management Company, said "Insurance companies and similar asset management products need clear legal positioning to promote healthy development of financial institutions' related businesses."

Liu Hui, Assistant President and General Manager of the Securities Investment Headquarters of China Resources Shenzhen State Investment Trust Co Ltd, said "Competition is the driving force behind financial innovation, but regulatory balance is essential to ensure market stability."

Zhang Nan, Inspector of E Fund Management Co Ltd, made a speech themed on "Perceive the era of large-scale asset management from regulatory changes".

Fu Yan, Director of the Legal Department of the Shenzhen Stock Exchange.

Duan Tao, Senior Vice-President of the Legal Department of Citic Securities Co Ltd, expressed that "The legal provisions for asset securitization are very fragmented and have connectivity issues with the current system. The transaction process is quite complex, involving multiple contracts, making dispute resolution very difficult. Arbitration can ensure unified jurisdiction."

Experts commented during the first section.

Liu Xuesheng, Member of the Insurance Law Professional Committee of the SCIA, said "The core competitiveness of the insurance industry is not about playing with money but should have a certain degree of composure, not falling behind trends, but also not blindly following them. Rationality and restraint are important."

Gao Xiaoli, Presiding Judge of the First Circuit Court of the SPC, indicated that "Judicial review by courts of international commercial arbitration is an essential component of arbitration development."

Wu Xiaohui, Vice-Chairperson of the South China Business & Law Forum, was the host of the first part of the second session.

Song Pingping, Partner of Oriental Fortune Capital, said "In order to break through some of the difficulties currently faced by investment institutions, it is urgent to improve relevant laws, such as the open preferred stock system, in order to provide institutional guarantees for the development of venture capital and innovative enterprises."

Peng Bing, Professor at the Peking University Law School, highlighted that "In order for asset managers to gain the trust of investors, the core is to fulfil their fiduciary obligations, and legal protection for this needs to be improved through rich market practices."

Wang Chunge, hosted the second part of the second session.

Wang Xiansen, Chief Judge of the Civil Adjudication Tribunal No 4 of the SPC, said "Bank cards represent a special financial relationship. Although bank card cases are not very complex, they involve modern technology in transactions, causing many difficulties for judges."

Dr. Liu Xiaochun, President of the SCIA, underscored that "For the financial industry, the advantages of arbitration in resolving disputes lie in its independence, professionalism, flexibility, high efficiency, and low cost."

Experts commented during the second session.

Fei Ning, Council Member of the Hong Kong International Arbitration Center (HKIAC), and the Singapore International Arbitration Center (SIAC), said, "Arbitration and judicial adjudication are complementary. Facing the rapid development of the financial market and the ever-changing business models, arbitration should play a more significant role in professionalism, flexibility, and rapid response to the market, providing some arbitration practices for judicial adjudication."

Ouyang Hao, General Counsel/ Executive Committee Member of Legend Capital, indicated that  "The focus of risk management is to achieve the best practices for the entire company technically and procedurally, where solving problems is more important than identifying them, processes are more important than outcomes, and proactive measures are more important than reactive ones, achieving a balance between risk control and investment returns."

Anthony Neoh, SC, Member of the SCIA Council, Former Chairman of the Hong Kong Securities and Futures Commission, and Co-Chairman of the Asian Academy of International Law, said "Legal and regulatory developments need to keep up with capital market progress."

Participants lauded the forum for its in-depth exploration of the asset management of financial institutions and its highly professional and insightful discussions. The South China Business & Law Forum has become one of the most influential and popular events in the industry.