On August 16, 2011, the 2nd Member Congress of National Association of Financial Market Institutional Investors (NAFMII) was held in Beijing. Together with representatives from 152 members, Liu Shiyu, Deputy Governor of the People's Bank of China (PBOC), attended the meeting and delivered an important speech. The congress was chaired by Shi Wenchao, Secretary-General and Executive Vice President of NAFMII.

2nd NAFMII Member Congress

Three reports were passed at the congress: including Work Report of 1st NAFMII Council, Work Report of 1st NAFMII Supervisory and NAFMII Financial Report, and multiple proposals were examined and adopted, including the Proposal on Revision and Improvement of NAFMII Membership Fee Standard. The 2nd Council and Supervisory were selected at the Congress. 91 NAFMII members including ICBC and ABC as well as 4 persons including Xie Duo were selected to be members of the 2nd Council, while 12 NAFMII members including Bank of Communications were selected to form the 2nd Supervisory. The 2nd Council held its first meeting, at which Xiang Junbo, Chairman of ABC, was selected as NAFMII President, 10 persons including ICBC President Yang Kaisheng were selected as NAFMII Vice President, Shi Wenchao as Secretary-General and Executive Vice President, and 57 members including ICBC and ABC as well as 3 persons including Xie Duo as members of the 3rd Executive Council. The 2nd Supervisory also held its 1st meeting, selecting Niu Ximing, President of Bank of Communications, as NAFMII Chief Supervisor.

The Congress made a comprehensive review of NAFMII's work since it was founded, summarized experience over the past 4 years, and clearly defined the goals and tasks for the near future. Since NAFMII was founded in 2007, it has been diligently implementing a series of state policies on developing the financial market and expanding direct financing. Under the leadership of PBOC and Ministry of Civil Affairs, NAFMII, by closely relying on market members, has made great efforts to promote financial market reform and innovation, solidly drive self-discipline, and effectively provide member services, resulting in greater development of the interbank market. With continuous emergence of innovative products, improvement of infrastructures, perfection of the market system and optimization of the regulatory mechanism, China's interbank market has been continuously expanded in scale and capacity and seen enhancement in overall strength. By the end of July 2011, non-financial enterprises debt-financing instruments accumulated issuance volumn reach RMB4774.6 billion, and outstanding volumn amounted to RMB2594.7 billion, 34.3 times and 18.6 times respectively as much as in the end of 2005. According to BIS data, by the end of 2010, the total outstanding volumn of bond issued by non-financial enterprises reached USD522.1 billion in China, ranking 3rd in the world after America and Japan. From 2005 to2010, the Compound Annual Growth Rate in China's debt capital market reached 81%, which was the fastest in the world. Interbank market has become an important investment and capital management channel for both financial organizations and non-financial enterprises. It is also becoming an effective platform for Chinese government macro economic and financial control and fiscal and monetary policies implementation, contributing a lot to accelerating the interest rates marketalization, addressing international financial crisis and maintaining financial stability. Faced with both opportunities and challenges in the new developing period, NAFMII will fully exert its function as a self-discipline organization, actively promote innovation of market mechnism and products, strengthen market self-discipline, improve service to members and the society, intensify NAFMII's own development, boost sustained, healthy and fast development of interbank market, and strive to realize the long-term goal of new-type self-discipline organization for China's OTC market.

Liu Shiyu, Deputy Governor of the People's Bank of China (PBOC), delivers an important speech

Liu Shiyu, Deputy Governor of PBC, attended the Congress and delivered an important speech. Mr. Liu pointed out that "energetically develop financial market and encourage financial innovation" is an important policy determined by the the State Council. NAFMII itself is a major organizational innovation in market management.Since NAFMII was founded, it has steadily pushed forward market innovation, continuously improved market mechanism, and formed a solid member service system, thus boosting healthy growth of China's interbank market.

Yang Kaisheng, 2nd NAFMII President and ICBC President, delivers an important speech

In his speech, Yang Kaisheng, 2nd NAFMII President and ICBC President, reviewed NAFMII's work and achievements in recent years and raised suggestions and requirements for the future. He expressed hopes that NAFMII continue to adhere to the guideline of "equal importance on innovation and development", consistently optimize the registration process for debt financing instruments, and place more emphasis on institutional arrangement and product innovation, especially promoting the innovation of asset securitization, so as to make new contributions to optimizing financial structure and boosting economic development. Mr. Yang also called on all market members and relevant departments to give more guidance and support to NAFMII's improvement and interbank market development in joint efforts to achieve sustainable development of China's OTC market.

Xiang Junbo, new President of NAFMII and Chairman of Agricultural Bank of China, delivers an important speech

Xiang Junbo, new President of NAFMII and Chairman of Agricultural Bank of China, said in his speech that NAFMII has played an active and remarkable role in promoting the innovation of debt-financing instruments and development of debt capital market since its foundation. The new Council will further improve the mechanism and service, correctly understand the new situation, and lay a solid foundation to develop the debt capital market with an aim to uplift China's interbank market to a higher level.

Niu Ximing, new Chief Supervisor of NAFMII and President of Bank of Communications, delivers an important speech

On behalf of the Supervisory, Niu Ximing, new Chief Supervisor of NAFMII and President of Bank of Communications, expressed gratitude to all member representatives for their support to Supervisory over the past 4 years. Centered on the theme of scientific development and the concept of transforming economic development mode more quickly, the new Supervisory will closely connect with market members in various flexible ways, listen to their needs, proactively propose ideas, and earnestly fulfill its supervisory duties to support NAFMII to make new progress in all areas.

Liu Zhongxiang, Deputy Director of MCA Bureau of Administration of NGOs, addresses the Congress

On behalf of Ministry of Civil Affairs (MCA), Liu Zhongxiang, Deputy Director of MCA Bureau of Administration of NGOs, congratulated on the successful holding of NAFMII Member Congress and highly commented on its efforts made in recent years. Liu Zhongxiang pointed out that NAFMII has achieved obvious results in such areas as regulating market order, promoting market innovation and safeguarding its members’ rights and interests, and has become an influential financial market self-discipline organization both at home and abroad, as well as an significant example of self-regulatory association to play the self-discipline role across industries and in different fields.

Shi Wenchao, Secretary-General of NAFMII, report to the Congress.