Wang Wen, Executive Director Of Chongyang Finance Research Institute, Renmin University Of China, Seize The Opportunity Of Two-Way Opening Of China'S Capital Market And Actively Seek The Pricing Power Of Financial And Capital Markets.

In from April 25th to 27th, the second "one belt and one way" International Cooperation Summit Forum was held in Beijing. This is China's most important home diplomacy this year.

Since the "one belt and one way" initiative was put forward in September 2013, the Chongyang Financial Research Institute of Renmin University of China has conducted a series of major research, research and external cooperation around the "one belt and one road" under the leadership of Wang Wen, executive director. Wang has long devoted himself to the study of "one belt and one road". In the past six years, nearly 100 countries have been investigated, and a series of works have been published.

A few days ago, the economic report in twenty-first Century conducted an exclusive interview with Wang Wen to carry out a dialogue on the strategy of "one belt and one road" and the new international situation, international capital and financial structure.

Wang Wen, executive dean of Chongyang Finance Research Institute, Renmin University of China

"One belt and one road" and the new international situation

Twenty-first Century: what are the new trends and trends in the current "one belt and one way" construction?

Wang Wen: first of all, policy stability and predictability increase. The nineteen reports attach great importance to the "one belt and one road" and upgrade the "initiative" to "international cooperation", which shows China's determination and patience to continue to promote "one belt and one road". "One belt and one road" was first written into the party constitution, which further increased the will of the state to the will of the party.

The second is to further improve the quality and efficiency of foreign investment. Over the past five years, China has increased the relevance of the "one belt and one way" national investment and the overall strategy, and constantly strengthened its awareness of risk prevention and control and its transnational operation capability. In the long run, the scale of China's foreign investment will increase further, and the overall investment structure will be more optimized, the quality and efficiency of investment will be further enhanced, and the ability to allocate resources on a global scale will continue to grow.

Finally, the third party market cooperation promotes joint financing and joint construction. China and the countries concerned have achieved positive results in promoting the third party market cooperation.

Twenty-first Century: what impact does the "one belt and one road" have on the change of world structure?

Wang Wen: since the "one belt and one road" initiative was proposed in 2013, more and more countries and international organizations should actively advocate. From the initial neighboring countries such as Central Asia and Southeast Asia to Australia, Europe, Africa, the Americas and other continents, initially formed the international capacity cooperation pattern covering four continents of Asia, Europe, Africa and Latin America, and formed a new pattern of regional economic and trade. Related bilateral and multinational cooperation has made rapid progress. The experience of global development is no longer confined to the Western model of the Washington consensus. Instead, it has produced a new pattern of international knowledge opening, which is mutual learning and mutual learning, especially "Look East" and draw effective experience from China's development path.

Twenty-first Century: what is the difference between the background of the second "one belt and one way" International Cooperation Summit Forum and the new expectations?

Wang Wen: the background of the second summit forum is, first of all, to promote the "one belt and one way" cooperation, which has formed an increasingly extensive international consensus on a global scale. Secondly, the construction of "one belt and one road" is moving from "great freehand brushwork" to "meticulous painting". Therefore, this summit will be more pragmatic, enhance the level of cooperation mechanism, face up to the problems and challenges in previous cooperation, and pursue stability.

Third, at present, unilateralism and protectionism are rampant in the world. Some countries still hold a skeptical attitude towards the "one belt and one road". The construction of "one belt and one road" is facing certain international negative public opinion pressure. The "one belt and one road" as such a time and space span of such a huge initiative, there is no risk and no challenge is impossible. Turning danger into opportunity is the greatest opportunity.

The second "one belt and one way" Summit Forum has a higher standard, larger scale and richer activities.

Analysis of international capital and financial structure

In twenty-first Century: financing is an important issue in building the "one belt and one road". Can you tell us about the current status of financial cooperation along the "belt and road" countries?

Wang Wen: the "one belt and one way" financial cooperation has broadened the financing channels for the construction and development of many developing countries along the route. As the largest developing financial institution in the world, China's National Development Bank has made great contributions to promoting financial intermediation: in 2018, the balance of international business loans of CDB was 312 billion 400 million US dollars, and the proportion of foreign currency loan market of domestic financial institutions continued to be the first; the implementation of the "250 billion yuan" equivalent RMB special loan of "one belt and one road" amounted to 111 billion 700 million yuan in real terms. In addition, according to incomplete statistics, as of the end of 2017, 10 Chinese banks had set up 68 branches in 26 "one belt and one road" countries. The "one belt and one way" financial cooperation has met the demand for unified currency settlement. China's signing of local currency swap agreements with many other countries along the way is conducive to the establishment of a more effective and smooth fund clearing system, while effectively avoiding exchange rate risk and ensuring the stability and security of investment in the region.

Twenty-first Century: what do you think of the role of the capital market in the "one belt and one road" approach, combining your experience with nearly 100 countries?

Wang Wen: in the process of promoting the construction of "one belt and one road", many bottlenecks hindered the implementation of investment plans: first, the large demand for infrastructure, the long recovery cycle and the low yield rate; the contradiction between them was not effectively alleviated; two, some "one belt and one way" related financial system was underdeveloped, and the degree of openness of the financial market was relatively low, so that funds could not effectively participate in the construction of large projects. In this context, the capital market as an important element of financial intermediation can play an important role. In recent years, China has actively and orderly promoted the cooperation and development of the capital markets along the "one belt and one way" state, promoted financial integration, and explored the establishment of a cross-border investment and financing mechanism for scientific and technological innovation, serving the deep integration of "one belt and one road" characteristic industry and innovative capital.

Twenty-first Century: how do you judge the rhythm and trend of China's capital liberalization? What are your suggestions for China's capital liberalization?

Wang Wen: capital account liberalization is an effective measure to promote cross-border capital flow and improve the efficiency of capital use, and also an important part of RMB internationalization. First of all, with the construction of "one belt and one road" to promote the internationalization of RMB, the construction of "one belt and one road" can realize RMB's external output under capital account and form a reflux through cross-border trade under current account items. China's capital account liberalization process should serve the construction of "one belt and one road". Insisting on bringing in and going out and laying equal stress on deepening bilateral investment cooperation should be able to promote more free movement of capital and other factors. Secondly, the innovation of RMB financial products is encouraged. With the deepening of the "one belt and one way" construction, the demand for RMB and financial products related to trade and investment is highlighted. In order to improve the ability of financial services to develop the real economy, the opening of capital account should be encouraged in the light of the principles conducive to the going out of Chinese enterprises and the internationalization of RMB, and the introduction of financial products that can be widely accepted in the international financial market.

Twenty-first Century: you have a view that has attracted much attention from the market. The absence of the capital market in the "one belt and one road" role is precisely the biggest opportunity. What are your expectations for the development of China's capital market? What are the policy recommendations in the process of building a transnational financial cooperation platform based on China's capital market platform?

Wang Wen: faced with the challenges of knowledge and finance in the promotion of "one belt and one road" construction, it is a financial challenge to maintain the sustainable operation of capital, resources and information in international investment, M & A and construction projects. The future cooperation of transnational capital markets can be started from two aspects:

First, we should strengthen exchanges with the capital markets along the lines. Since 2015, the Shanghai Stock Exchange has signed a subscription agreement with 8 exchanges or international financial centers along the way, including Astana, Pakistan stock exchange and Dhaka stock exchange, and has held 7 large-scale international forums. In addition to the exchange level cooperation, the Shanghai Stock Exchange is exploring how to give full play to its own advantages and provide relevant training for the capital markets along the belt along the way.

The two is to carry out deep cooperation with the state exchanges. Since the Shanghai Stock Exchange and the Deutsche bourse and China Financial Futures Exchange jointly established the China EU International Exchange in October 2015, the Shanghai Stock Exchange has completed the joint stock exchange of the Pakistan stock exchange. It has participated in the Astana exchange and joined the Dhaka stock exchange, and has further promoted the substantive and pragmatic cooperation between the exchanges. The Frankfurt stock exchange has entered into the Shanghai Stock Exchange.

Twenty-first Century: what do you think is the difference between Shanghai and Shenzhen Stock Exchange compared to the global capital market trading place? What vision and suggestions do you have for China to build a capital platform with international influence in the future?

Wang Wen: first of all, we should further promote the internationalization of exchanges and form a new pattern of market opening. We should further promote cross border cooperation and deepen cooperation in technology, products and management. We should seize the opportunities brought by the two-way opening of China's capital market and expand the international influence and radiation force of China's capital market.

Second, enhance the ability to serve the real economy, support the real economy as a fundamental foothold for financial development, and open up the channel for capital flow to the real economy and improve the efficiency of capital use. We should promote innovation in financial products and services, meet diversified financing needs, broaden the financing channels, expand the proportion of direct financing in the financing structure, develop multi-level capital markets, actively develop the bond market, and standardize the development of Internet financial markets.

Finally, we should actively seek the pricing power of Finance and capital markets and build an international financial center. Actively participate in global financial governance, promote international financial cooperation, participate in global financial governance, and enhance the right to speak in international financial organizations.