Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06BEIJING8331, CHINA SECURITIES REGULATOR TELLS FED VISITORS

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06BEIJING8331.
Reference ID Created Released Classification Origin
06BEIJING8331 2006-05-05 09:46 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Beijing
VZCZCXRO5094
RR RUEHCN RUEHGH
DE RUEHBJ #8331/01 1250946
ZNR UUUUU ZZH
R 050946Z MAY 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC 4497
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
UNCLAS SECTION 01 OF 02 BEIJING 008331 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USDOC FOR DAS LEVINE AND ITA/MAC/AP/MCQUEEN 
TREASURY FOR OASIA/ISA KOEPKE AND DOHNER 
STATE PASS CEA FOR BLOCK 
STATE PASS FEDERAL RESERVE BOARD FOR JOHNSON/SCHINDLER; SAN 
FRANCISCO FRB FOR CURRAN; NEW YORK FRB FOR DAGES/CLARK 
STATE PASS USTR STRATFORD/WINTER/MCCARTIN 
 
E.O. 12958: N/A 
TAGS: EFIN EINV PGOV CH
SUBJECT:  CHINA SECURITIES REGULATOR TELLS FED VISITORS 
CAPITAL MARKETS MAKING PROGRESS 
 
REF:  BEIJING 07696 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE HANDLE 
ACCORDINGLY.  NOT FOR DISTRIBUTION OUTSIDE USG CHANNELS. 
 
1.  (SBU) Summary:  The head of the Research Department at 
the China Securities Regulatory Commission (CSRC) advised a 
group of analysts from the New York Federal Reserve Bank on 
April 17 that China's stock market reform process is moving 
forward, with a new listing process, successful conversion 
of non-tradable shares and more participation by 
institutional investors, including by Qualified Foreign 
Institutional Investors (QFIIs).  The QFII program has been 
especially important in improving governance standards, and 
the Qualified Domestic Institutional (QDII) program is also 
poised to begin.  The official also sees signs of progress 
in the development of a corporate bond market.  While 
securities firms are still weak, introducing foreign 
partners will help bolster their operations.  Overall, he 
believes the markets are much improved and will only become 
stronger.  End summary. 
 
Reforming the Markets 
---------------------- 
 
2.  (SBU) On April 17, a delegation of analysts from the 
New York FRB met with Qi Bin, the head of the Research 
Department at CSRC, to discuss recent developments in 
China's capital markets.  Qi began by insisting that the 
CSRC's priority is further liberalization of the capital 
markets.  In that spirit, the CSRC has recently reformed 
the listing process.  Formerly, listings were determined by 
the CSRC alone, but now it is more market-driven, with 
securities firms taking the lead.  He confirmed a recent 
CSRC announcement that listings will resume within a few 
months.  Qi noted that China is both an emerging market and 
a transitional economy and that its stock markets have a 
relatively short history.  Still suffering from poor 
governance and disclosure standards, the markets are 
struggling with many other problems as well, including the 
non-tradable share (NTS) problem.  (Note:  Before the NTS 
reform, two-thirds of the shares of listed companies were 
state-owned and non-tradable.  End note.)  He suggested the 
NTS reform would be finished within a few months. One sign 
of progress in the reform program is the fact that 25 
percent of the market is now in the hands of institutional 
investors.  Although all of the securities firms are 
essentially bankrupt, the Government is trying to bring in 
new incentives like MBOs and stock options.    Thus far, 70 
percent of the NTS reform has been completed.  The goal of 
the CSRC is to stabilize the market and compensating 
tradable shareholders is intended to help achieve that 
goal. 
 
QFII and QDII 
------------- 
 
3.  (SBU) Another important contribution to a more stable 
market, according to Qi, was the introduction of the 
Qualified Foreign Institutional Investor (QFII) program. 
Begun in 2002, the program has turned out better than 
expected by improving the market standard and changing the 
market philosophy.  The QFII program has required companies 
to improve disclosure and governance.  There are currently 
39 QFIIs to which US$6 billion of the potential US$10 billion 
quota has been granted.  As for the Qualified Domestic 
Institutional Investor (QDII) program, Qi stressed that 
the Chinese Government must be "very careful" to ensure 
that it leads to an improvement in China's financial 
system.  Noting that a series of new policy announcements 
had just come out on the QDII program (see ref), Qi said 
the Social Security Fund and certain insurance companies 
had already been allowed to begin investing overseas. 
Retail investors will also be allowed to invest in overseas 
markets later this year. 
 
Conditions for Bond Market 
-------------------------- 
 
4.  (SBU) Commenting on the bond market, Qi said there are 
a number of government organizations involved in the 
supervision process, chiefly CSRC, the People's Bank of 
 
BEIJING 00008331  002 OF 002 
 
 
China, Ministry of Finance and National Development and 
Reform Commission.  Qi said he sees the explosion in the 
short-term market as a positive development, but the 
opening of the bond market has been too slow. 
Acknowledging there is a lot of pent-up demand by companies 
to raise money in the bond market, Qi was not sure when 
longer-term bonds would be allowed.  Qi agreed that 
credible rating agencies are important for the bond market, 
and noted that Moody's just signed an agreement to enter a 
joint venture with the Cheng Xin credit rating agency.  He 
also noted that Morningstar has a wholly-owned mutual fund 
rating agency in Shenzhen.  In Qi's view, the prerequisites 
for a bond market are:  quality credit ratings, investor 
education, good financial institutions and a proper legal 
environment. 
 
Securities Firm Problems 
------------------------ 
 
5.  (SBU) Regarding securities firms, Qi noted that barring 
them from operating asset management accounts for clients 
was an important improvement.  Another important step will 
be making them more competitive by introducing foreign 
partners.  At present, foreign investors are restricted to 
49 percent of an asset management company and 33 percent of 
a securities firm.  Qi said progress in reforming the 
markets and allowing more foreign participation depends on 
the strength of the market.  The stronger the market, the 
faster reform will move. 
 
6.  (SBU) Qi said he is most worried about the prospect 
that the market will remain too small and will crash.  He 
regards the markets as already too far behind China's 
economic development.  Although there has been a lot of 
negativity about the markets over the past five years, he 
believes the market is now more disciplined.  The worst 
firms have already been driven out of the market and there 
is now a possibility of good value investments.  Although 
the market has dropped 50 percent, 120 firms have actually 
tripled in value.  The market was once all speculation but 
the situation is now changing. 
 
7.  (U) This report has been cleared by the New York FRB 
delegation. 
 
SEDNEY