The 3rd “B&R” International Finance Forum
First, currently there is ananti-globalization trend, with populism as basis and nationalism as banner,emerging in western countries. For some time to come in the future, the wave ofglobalization that has promoted world economic development since the past fewdecades may meet with some impedance. The Silk Road Economic Belt and the 21st-Century Maritime Silk Road (“B&R”)initiative,which are in line with the intrinsic laws of international economic developmentand active in adapting to the new trend of world economic cooperation, is themost important point of support to the 2030 Agenda for Sustainable Developmentof the United Nations. Moreover, there are also important measures taken byChina to respond to this anti-globalization trend and also core strategy for anew type globalization plan. From advancing economic development to promotingpolitical and social integration, the “B&R” initiative will bring newopportunities for the healthy development of economic globalization, helpingnot only the global economic recovery and solving problems as unbalanced andunequal growth, but more importantly, providing underprivileged groups andunderdeveloped areas with new access to globalization. Hence, at present, it isvital to speed up implementation of this grand “B&R” Initiative.
Second,”B&R” construction will, through outward investment and capacitycooperation, promote global value chain reconstruction and gradually forminteractive development and production chain. It is suggested that there shouldbe a “B&R” Investment Development Bank so that it can provide financingservice for outward investment and capacity cooperation solely for relevantcountries.
Third, to explore ways such assetting up domestic high-level “B&R” Outward Investment Committee, overseasChinese-Funded Enterprises Chamber of Commerce” etc., strengthening top-leveldesign of outward investment industry layout, strategic layout and investmentlayout for different countries. Meanwhile, Chinese-invested enterprises areencouraged to have good cooperative relations among themselves, providingquality and efficient supporting services overseas.
Fourth, “B&R”-relatedfinancial institutions may take full advantages of various financial innovativemeasures such as issuing green bonds as a pilot program, opening up andincreasing long-term and low-cost funds resources in order to meet therequirement for diversified capital needs as well as provide greater creditsupport for “going out” enterprises. Financial institutions should lay emphasison integration of financial capital and industrial capital while supportingindustrial development of “B&R” countries so as to achieve a win-win resultfor both sides. Consequently, industrial upgrade and transformation as well asthe integration of regional industrial chains could be realized.
Fifth, “Panda Bonds” is a vitalfinancing mode that supports “B&R” Initiative. To better develop “PandaBonds” and increase the level of internationalization of inter-bank bondmarket, it requires more foreign institutional investors to participate,allowing more overseas organizations and institutions to issue “Panda Bonds”including the New Development Bank and Asian Infrastructure Investment Bankwhile easing restrictions on the use of capital by the bond issuing body.Meanwhile, in order to support RMB “Panda Bonds” market development,macro-prudential management system must also be carried out effectively.
Sixth, to explore the possibilityof establishing stocks of international version in the Shanghai Free TradeZone, more relevant international standard concerning listed companies shouldbe adopted in the hope attracting more IPOs from both home and abroad. Sinceborders areas are places in which close exchanges between neighboring countiestook place, it is suggested that proper mechanisms that allow equity and debttrading in regional equity trading markets in border provinces and citiesshould be established should there be any financing needs from marketparticipants. Trading in National Equities Exchange and Quotations (NEEQ),growth enterprise market (GEM) or main board market may be considered whennecessary.
Seventh, it is suggested thatmeasures be taken to attract more international financial institutions,increasing trade categories while easing trading restriction etc. There is alsoneed to study the possibility of realizing the possibility of starting trade ofgold futures, providing “Shanghai Gold” with greater international influence.On top of that, further strengthen financial futures cooperation between the”B&R” countries and regions while enhancing their power of discourse andpricing power in bulk commodity markets.
Eighth, in monetary cooperationwith the central banks of the “B&R” countries, it is necessary for China tostrengthen the building of its domestic currency liquidity exchange mechanism.Central Bank of China may consider providing help in liquidity based onreciprocal swap currency agreements. After establishing relevant mechanisms, itis also needed to strengthen relevant operation practice so as to cope withemergencies and stabilize market confidence in time.
Ninth, to better supportfinancial institutional services to local economic development and participatein the “B&R” construction, there is a need to establish regional financialcooperation mechanisms at different levels. The key to construction of aregional financial safety net lies in continually enhancing economic andfinancial ties and toughness of financial market of the area. By doing so,local financial market could get better prepared for potential shocks from theoutside.