"Along the way" financial strategy and challenge

"Along the way" the construction and development of the carrier will be more dependent on cross-border financial cooperation. How to locate and play a good role of the fund investment bank and the Silk Road? How to adjust the private sector investment in multilateral cooperation? Do you need to build a specialized financial credit system? How to learn from the experience of the multilateral development banks, to seek mutual benefit mechanism?
Recently, the China and the world economic research center of Tsinghua University and the reconstruction of the Bretton Woods System Committee co sponsored a "along the way" international think tank summit held in Beijing. To the development and Reform Commission, the Ministry of Commerce and other experts in Belt and Road Initiative along foreign experts attended and "The Belt and Road" future oriented cooperation and suggestions.
"Along the way" financial strategy
'along the way' a clear priority to solve the infrastructure interoperability, and actively strengthen the energy, manufacturing, agriculture, mining and other fields of social production and production capacity of international cooperation. At the same time, establishment of Asian investment banking and silk road fund etc., play an important role to solve the financing bottleneck, promote trade and investment liberalization and facilitation level." Chinese economic exchange center executive director, former deputy director of the NDRC Zhang Xiaoqiang said.

Zhang Xiaoqiang introduction, in the multi joint efforts, along the way building momentum, the trade results highlight. April 20th to 24, President Xi Jinping paid a state visit to Pakistan, the two countries signed involving energy, industrial and scientific cultural and other 61 agreements, which amounted to $46 billion in November 22nd Chinese ASEAN FTA negotiations on a comprehensive upgrade of the end, the two sides signed an agreement in December 2nd, connecting the Railway cooperation agreement in Laos, the territory of Kunming to the old China the Border Railway in August of this year has started brewing for many years, with a total investment of $20 billion in the trans north line into the implementation phase.
Still, as the country's political, economic, cultural, legal and other aspects of China are very different, so the process of advancing along the way will also face a certain financial risk.
Vice president of the China International Research Institute, along the way research center executive director Guo Xiangang said, to strengthen the national and regional security situation, the political trend, legal and financial situation of the study, a risk assessment. Strengthen security measures for Chinese enterprises and companies along the lines of national construction and development, strengthen the training of staff of the country along the route, avoid security risks, legal risks, financial risks, and continue to accumulate experience and promote.
"Along the way" including the establishment of the railway, roads, pipelines and other infrastructure, these projects require a lot of financing, and the recovery period can not be long. Infrastructure investment, which means to carry out long-term investment, recycling seems to become less sure, how to play the effectiveness of the funds?
"So private participation is very important, it can help us to use official resources effectively, and improve the business operation of these projects." Ding director of Standard Chartered Bank of China Research Department said, we believe that the investment bank, and Chinese Silk Road Fund policies to support The Belt and Road early in infrastructure projects, investment of more than $1 trillion in the next ten years.
When it comes to the maintenance of the area along the way, Zong Liang, deputy director of the International Institute of finance, Bank of China, said the cooperation in the financial sector at least five aspects: first, monetary cooperation. Including payment, especially with the RMB denominated settlement. Second, the liquidity of the support and development of cooperation in financing. The people's Bank of China and the "along the way" along the country signed a currency swap agreement, the RMB into the SDR basket, this aspect will have more positive development. Third, cooperation in financial institutions. Domestic banks should strive to open up the country to set up branches in the country. Fourth, cooperation in financial markets. Encourage and welcome more countries along the offshore market to issue rmb. Fifth, the financial sector regulatory cooperation. Strengthen supervision and cooperation with countries along the country, the capital flows and other speculative money laundering and other activities carried out strict supervision.
Asian Development Bank of China on behalf of senior economist Zhuang Jian at the meeting summed up the "along the way" three aspects of regional financial strength: first, the lack of direct integration of the country along the channel; the two is the financial strength of the limited, especially the lack of infrastructure funding, financing, three is the lack of multilateral cooperation framework.
How to deal with the huge challenges, including financial weakness? Zhuang Jian said that as soon as possible to establish and improve the financial integration of cross regional diversification. First of all, the regional diversification of financing mechanism to form three aspects of the echelon, the first echelon is the international regional financial institutions; the second tier is the national policy banks, the National Development Bank, etc.; the third tier is commercial banks, plus the corresponding financial institutions.

Trade and investment along the way
Patrick Huffman, deputy director of the United Nations Development Program of China, said that the investment of the Internet should not only focus on the benefits of large-scale infrastructure projects, but also to take advantage of the local benefits, while strengthening cross-border trade, improve the living of local people's investment.
Peking University, Lincoln Institute of City Development Research Center Director Liu Zhigen had rich working experience according to the world bank for many years, put forward the specific problems that may be encountered The Belt and Road "construction investment: first, in the middle of the integration, win-win project coordination more difficult; second, the best one can decide, or several the dominant role; third, to focus on strategic synergy, in the design of The Belt and Road", in order to avoid the low efficiency, and to adopt a new standard.
Financing is an important support along the way, along the way in the capital needs of the bank is willing to join. In this regard, the National Development Bank's senior expert Zhu Qingdong proposed for the "along the way" cooperation, the construction of specialized credit system. He believes that the construction of the financial system in the future is the fundamental guarantee of financing.
Zhu Qingdong believes that the combination of financial institutions in all aspects of the credit is the most basic. To establish a mechanism for communication, the country to use regulatory authorities to establish cooperation and coordination mechanism, the first financial regulatory authorities to reach a cooperative mechanism, in the framework of their financial supervision to make new institutional arrangements.
In addition, Zhu Qingdong said that the financial cooperation to introduce the framework and guidelines for financial policies, the major infrastructure projects, the cooperation of the countries concerned about the project, the state should give credit support. In addition, the government should give special attention to some of the projects in the market, to carry out supervision.