On June 3, 2010, the Second Summit of the Development of China's OTC Financial Derivatives sponsored by the NAFMII was successfully held in Beijing. The relevant senior management from the NPC Financial and Economic Committee , the Supreme People's Court, the Legislative Affairs Office of the State Council, the Research Office of the State Council, the International Financial Crisis Response Office, the National Development and Reform Commission, the Ministry of Finance, the People's Bank of China, the State-owned Assets Supervision and Administration Commission of the State Council, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission and the State Administration of Foreign Exchange and other government departments attended the summit. Nearly 300 representatives from more than 100 institutions including China's major banks and foreign banks, securities companies, insurance companies, fund companies, enterprises and relevant intermediaries attended the summit.

Liu Shiyu, Deputy Governor of the PBOC delivered the opening speech. He said: “Developing the financial market still remains the essence of building national financial market in the post financial crisis era.” Under the condition of guarding against financial risk, “the encouragement of financial innovations is the only way to develop financial market,” he said.

The Summit was themed innovation and development of credit derivatives and was composed by three parts. Experts and scholars attending the Summit, in the ways of keynote speech and panel discussion, delivered wonderful speeches and had hot debates on the changes of credit derivative products in the post financial crisis era, the paths of innovation and development of credit derivatives in our country, the supporting mechanism and external environment of credit derivatives and other relevant contents.

Experts and scholars believed that in the process of dealing with the international financial crisis, countries with developed financial market in Europe and North America launched global reform of financial regulation. Every country's regulatory authorities and market-related institutions affirm the positive role of basic credit derivatives; meanwhile, they take a series of measures to enhance market regulation, change trading conventions, modify master agreement, strengthen requirements of information reports and promote development of central clearing systems. The focus is cast on improving the efficiency and transparency of credit derivatives market and reducing market systematic risk. After the financial crisis, financial derivatives market including credit derivatives is taking on new development trends and features. However, the global financial crisis doesn’t change the essential attribute of credit derivatives as a neutral financial instrument. The methodologies employed to tackle inadequate regulations and excessive speculations of OTC financial derivatives market of developed markets were not fully applicable to the real situation of the development of financial derivatives market in our country. Compared with international market, the financial market in our country always lacks effective credit risk management tools, which not only fails to meet the real need of commercial banks and other market participants, but also restricts the in-depth development of domestic financial market.

Experts and scholars believe that, currently, the promotion of innovation and the development of credit derivatives in our country are of great significance. It is beneficial to further enrich credit risk management tools availableto investors, promote effective diversification of credit risk, improve financial market risk-sharing mechanism, boost continuous and sound development of financial system, and maintain macro-financial stability. Therefore, the pace of innovation and development of financial derivatives in our country should not be ceased because of the international financial crisis. On the contrary, we should seize this opportunity to exploit potential advantages to the full, develop vigorously credit derivatives meeting real needs of our country. On the basis of learning lessons from the international financial crisis, innovation of credit derivatives in our country must serve for the needs of the real economy; it should avoid the practice of pursuing innovation only for the sake of innovation and derivatives only for the sake of derivatives, and prevent damages to the reasonable interests of investors because of the utilization of over-complicated and highly-leveraged financial derivatives.

After practices in current years, China has preliminarily established the infrastructures for innovation and development of credit derivatives. System construction and regulation system are continuously being improved, and the scale of credit assets are continuously to expand. Taking credit bond market as an example, from the Year 2005, China's credit bond market has developed rapidly, and has become the largest credit bond market in Asia. Meanwhile, the scale of credit assets of commercial banks is much larger than this. Therefore, the pressing matter of the moment is to solve the problem of nonexistence of credit derivatives. We should adhere to the principle of "from simple to complex, from easy to difficult" when promote orderly innovation of credit derivatives. Under the condition of strictly controlled leverage ratio and guarding against risks, China shall promote sustainable development of credit derivatives gradually and step by step.

The success of the Second Summit of the Development of China's OTC Financial Derivatives has provided a high-level interaction platform to discuss China's OTC financial derivatives development for relevant authorities, experts and scholars, and market members. The NAFMII said that it will make further efforts to shape the brand of the Summit of the Development of China's OTC Financial Derivatives according to the market needs; meanwhile, it will continuously focus on the mission of " Self-regulation, Innovations and Service", gather the wisdom of market members, address market members' needs, and make due contributions to the development of China's OTC financial derivatives.