Opening Wider To The Outside World To Promote The Internationalization Of RMB

In terms of micro management, on the one hand, the procedures of administrative examination and approval, filing, licensing, registration and so on have been abolished; and on the other hand, we should actively explore new models of more market-oriented and post supervision and management, and adopt post supervision and negative management.

It is necessary for banks to carry out auditing of authenticity and compliance independently according to law, while effectively preventing risks, and streamlining processes and procedures to reduce the cost and time of banks and enterprises.

In macro management, the macro Prudential Management Framework of RMB cross-border movement has been established. With the RMB account as the breakthrough point, the RMB cross-border payment information management system has been set up. It has comprehensively monitored, analyzed and assessed the flow of funds, paid close attention to potential systemic risks, and focused on macro policy and maintaining overall stability.

It should be said that decentralization and decentralization and management innovation have greatly reduced the cost of cross-border pactions in accordance with the law, and greatly enhanced the attractiveness of the renminbi.

We will further push forward the reform of exchange rate and interest rate marketization so as to lay a market foundation for the cross border use of RMB.

Since 2009, the RMB exchange rate has been keeping close to the equilibrium level in the general direction of market supply and demand, and the RMB exchange rate formation mechanism has been further improved. In 2012, the floating rate of RMB exchange rate expanded to 1%, and in March 2014, it expanded to 2% again.

RMB has risen or depreciated, two-way volatility has steadily expanded, and exchange rate expectations are beginning to split.

A more balanced and flexible RMB exchange rate is not only the foundation for the normal and sustainable development of cross-border RMB business, but also an important condition for the renminbi to become the major international currency.

The interest rate marketization reform has also taken a new step. In accordance with the central plan, we have stepped up the pace of loosening interest rate control, strengthening mechanism construction and promoting product innovation. The independent pricing space of financial institutions has further expanded, and the market mechanism has played a significant role in the formation of interest rates.

The exchange rate and interest rate formation mechanism and market reform have been steadily pushed forward, enabling the market players to allocate financial resources better at home and abroad according to the market price signals, and have laid a necessary market base for the cross border use of RMB.

We should speed up the opening and development of domestic financial markets and provide more room for cross-border RMB business development.

In recent years, the depth and breadth of domestic financial markets have been further improved. Innovative products have been continuously launched, infrastructure has been gradually improved, market levels are more abundant, operational efficiency has been further improved, and the depth and breadth of financial markets have been increasing, attracting more and more internal and external institutions, which has formed a more positive interaction with the cross border use of RMB.

On the one hand, with the expansion of the cross border use of RMB, the increase of RMB holdings by foreign subjects and the increasing demand for domestic financial markets have promoted the opening and improvement of the market.

We have expanded overseas institutions to use RMB investment interbank bond market and RMB qualified foreign institutional investor (RQFII) pilot and pilot overseas institutions to issue RMB bonds in the domestic inter-bank bond market, and designed "Shanghai Hong Kong Tong" cross share trading system.

As of August 2014, 166 overseas institutions were allowed to enter the interbank bond market, and 81 overseas institutions were eligible for RQFII pilot projects.

On the other hand, the development of domestic financial market and the improvement of RMB reflux mechanism have improved the attraction of RMB financial assets, and in turn promoted the expansion of cross border use of RMB.

We should actively promote RMB capital account convertibility and expand channels for cross-border RMB business development.

Over the past five years, RMB capital account convertibility has been well interacted with cross-border RMB business.

The cross-border RMB business of direct investment, RMB external loan and external guarantee has been developing rapidly. In 2014 1~8, the actual inflow of non-financial foreign direct investment capital account settlement accounted for 31.6% of the actual foreign investment amount of the non-financial sector in the country, and the actual outflow amount of RMB settlement of foreign direct investment accounted for 4.3% of the total amount of foreign direct investment in the same period.

The number of RMB loans provided by financial institutions for enterprises to "go global" is increasing.

The renminbi began to settle accounts in commodity trade.

At the same time, foreign investors can use Renminbi to establish, acquire and share financial institutions in China.

Generally speaking, the RMB cross-border investment and financing business has enriched the connotation of RMB capital account convertibility, and RMB capital account convertibility is constantly advancing, which will further expand the development space of cross border use of RMB capital account.

We should constantly improve and improve the capacity of macroeconomic regulation and control and financial supervision, and effectively prevent systemic risks.

Cross border use of RMB makes international and domestic economic and financial contacts and interactions more closely.

More market-oriented and forward-looking macro Prudential management needs to be established and perfected.

Monetary policy should be changed from quantity type to price type, and the adjustment function of interest rate will be further developed.

In addition, we should continue to improve the coordination mechanism of financial supervision, strengthen the coordination of cross financial products, cross market financial innovation, and promote cross industry and cross-border regulatory cooperation.

Generally speaking, in recent years, the ability of macroeconomic regulation and control, financial supervision, prevention and mitigation of risks and emergency response has been significantly improved, which will play a positive role in preventing and resolving the risks that may arise in the development of cross-border RMB business in the future.

Hu Xiaolian believes that the fundamental driving force for the rapid development of cross-border RMB business and the development of RMB internationalization is market demand.

In the process of China's increasingly integration into the economic globalization, the initiative and consciousness of enterprises and financial institutions to "go global" have been enhanced. The desire to allocate resources in two markets, domestic and overseas, has become more urgent. The consciousness and ability of international operation and participation in international competition have been gradually improved, and the ability to recognize and manage market risks has been gradually enhanced.

It is in this process that the urgent need for enterprises to avoid risks and reduce costs has stimulated the strong demand for the use of RMB for cross-border trade and investment settlement.

At the same time, it is also necessary for financial institutions to provide financial services that are more close to the body and meet the needs of enterprises.

Financial institutions, especially Chinese banks, have made full use of the advantages of large volume of RMB debt business, abundant resources of RMB customers, and convenient liquidation of RMB funds. They have actively expanded cross-border RMB business and improved their financial services and international operation level. Foreign banks have taken full advantage of overseas institutions, business capabilities and product innovation experience to actively participate in the RMB business, and have expanded their profitability as a new business growth point.

Therefore, without the exuberant market demand, cross-border RMB business will be "passive water" and "wood free".

In the policy orientation of cross-border RMB business, we always adhere to the fundamental purpose of serving the real economy.

The cross-border use of RMB started from trade settlement, and then expanded to direct investment and financing.

The cross-border RMB business is prudent and step by step, and appropriate risk control measures such as admittance and quota are adopted.

This ensures that cross-border RMB business mainly plays the role of serving the real economy and promoting the coordinated development of the financial sector and the real economy.

To sum up, in a word, cross-border

The rapid development of business and internationalization of RMB are the inevitable result of market demand driving and deepening of China's reform and opening up.

It can be said that if we fail to comply with market demand and vigorously push forward reform and opening up, we must always adhere to the policy orientation of serving the real economy.

At present, our country is in the new stage of deepening reform and opening up. The overall strategic plan for national reform is being implemented step by step, and the reform of exchange rate interest rate marketization, RMB capital account convertibility and financial market becoming bigger and stronger will continue to push forward. At the same time, the major strategies such as "big peripheral channel" and "all the way" construction will be gradually implemented. China's deepening foreign economic and financial exchanges will lead to a wider and wider market demand for cross border use of RMB, which will continue to inject new impetus into the internationalization of RMB.

It is foreseeable that the internationalization of RMB will be a bigger sail and a steady voyage.

At the meeting, Tong Daochi, Assistant Minister of Commerce, Chen Yulu, President of the people's University, Professor Li Tai ye, Professor of economics and management, Tsinghua University, President of ICBC, Yi Hui man, President of Hongkong Bank of China, President of Guangbei, President of Hongkong HSBC Hongkong, Yang Lin, chief accountant of Sinochem Group, and Bai Yi, vice president of the vice president of the company, respectively made speeches.

The speakers reviewed the course of cross-border RMB business in the past five years, fully affirmed the achievements achieved and prospected the future prospects.