Ishamshad Akhtar, The Former Deputy Secretary Of The United Nations: China Is Very Attractive To The Outside World. The Great Bay Area Can Provide More Advanced Experience For China'S Development.

"China's economic influence and potential, market size and attractiveness to foreign investors have been widely recognized, especially the" one belt and one road "partners. The former Deputy Secretary General of the United Nations, the former executive secretary of the Asia Pacific Economic Council and the Boao forum for Asia Forum policy adviser sham shad ahtal, in December 5th, were presented at the "2019 Southern financial international forum" sponsored by the central broadcasting and TV station, Guangdong and Hongkong Macau Bay headquarters and the southern financial and media group, and the twenty-first Century economic report.

In an exclusive interview with the economic news reporters in twenty-first Century, sham Shah ahtal said that through opening to the outside world, China is providing an attractive and open market for foreign-funded enterprises, and China will carry out reform and opening up to the end.

Shamshad ahtel also pointed out that in the process of China's reform and opening up, if we can further integrate the Da Wan area and docking with overseas markets, we will be able to effectively inflow capital into China.

Shamshad Akhtar served as governor of the Central Bank of Pakistan and vice president of the world bank.

Former deputy secretary of the United Nations, Changsha, Gan Jun

Full liberalization brings confidence

Twenty-first Century: at present, China is carrying out a series of reforms. The pace of opening up China's financial sector is very fast. You have done some research on the reform of China's financial industry and the development of capital market. What kind of changes do you think the opening of China's financial sector will bring?

Shamshad Akhtar: as early as the middle of 1990s, I helped the reconstruction of China's financial framework as the head of the Asian Development Bank's governance, finance and trade department. From 1990s to the present, great changes have taken place in the world, and China is changing.

One of the things that is still developing and very active in China's market is opening up an open market for foreign-funded enterprises through opening up. This is a great leap forward by the government or regulators. But China should also gradually establish a more open market, such as the formation of a capital market that can be freely and freely flowing with global exchanges. This year's reform is also constantly advancing. On the one hand, in the banking and capital markets, there are also plans to simplify the payment system constantly. In addition, regulators can effectively manage the financial system and ensure the monitoring of risks through various technical means.

Chinese regulators now set different standards for capital access in onshore and offshore markets. Of course, they have improved some restrictions, but the ultimate goal should be to eliminate them completely. One of my suggestions is to change the mode of operation of the brokerage industry, change the mode of setting up brokerage subsidiaries in China by domestic securities or fund companies, and make funds into intermediary funds through appropriate institutional framework. This will be a good way to attract funds in a systematic way. Because the brokerage industry is within the regulatory framework of securities regulators, China can also manage it better.

Twenty-first Century: what are your suggestions for China's financial reform?

Shamshad Akhtar: I think it is important to build and cultivate more investors' confidence in the market. This requires open and comprehensive liberalization, and also needs to enhance market transparency. It also needs to strengthen exchanges among front-line regulators so that their businesses can achieve high quality self-regulation, support and protect investors. At the same time, it is necessary to ensure good governance and independent management of exchanges. The capital market must remain independent. Its functions are based on transparent and open regulatory framework and effective implementation.

Now there are many reforms in China. These reforms are also gradual and continuous progress in the process of reform and opening up. If we can further integrate the big bay area and docking with overseas markets, we will be able to effectively inflow capital into China.

China's experience promotes global governance

Twenty-first Century: many economies in the world coincide with the "one belt and one road" initiative on some policy proposals. How do you see the significance of the "along the way" countries to these economies? How should every economy help the construction of infrastructure in Asia and Africa?

Shamshad Akhtar: Taking the European Union as an example, the European Union has its own traditional relationship with Asia and Africa. China has gradually adopted financing, development projects and regional development cooperation with these countries. On the whole, the EU's support for these areas is not as high as that of China. Moreover, China's "one belt and one road" initiative can help the countries along the route to save time and cost more effectively.

The "one by one" initiative has provided connectivity through multiple channels, forming the Silk Road Economic Belt and the maritime Silk Road, thus forming a convenient multimodal transport mode. The EU is also developing its own access in Asia and Africa. The most controversial point is based on whose legal rules and norms. Therefore, there must be a standardized legal framework and an environmental monitoring standard system, but it is very complicated. For example, the European Union has already established its own standards in infrastructure construction, but Asia is developing. You can not expect other parts of Laos, Kampuchea or Asia to reach the EU standards overnight, according to the EU standards, it will take a long time.

But during this period, it is important that we improve the feasibility criteria of all the projects. A competitive bidding process is based on the project execution process and is carried out in a unified manner to ensure a more balanced and equitable development.

Every economy must operate within its capabilities. I think the most fundamental thing in different countries is to ensure competitive tendering in construction rather than in isolation.

Twenty-first Century: what do you think China needs the most of the needs of its partners?

Shamshad Akhtar: first of all, I think that through the "one belt and one way" initiative, China helps these countries open their trade channels, because some of them do not have high-quality trade channels. The first step in this case is to build national infrastructure, because many countries along the "belt and road initiative" are relatively low income countries, or have a relatively high deficit and relatively weak infrastructure quality. Therefore, China and the "one belt and one road" partnership should give priority to the development of high-quality infrastructure.

Secondly, before investing in the partners of the countries along the line, we should think strategically and build relevant infrastructures according to actual needs, so that these cooperation can be more competitive and the development of the economic corridor will be better.

Moreover, when infrastructure development and construction, we should consider multimodal transport. For example, when constructing ports, we should consider how to connect them with land highways and railways.

At the same time, I believe that the expertise of the economic departments or industrial departments along some of the "along the way" areas and the state is very weak, and there is also a lack of available resources, which impedes the progress and sequence of project implementation under insufficient resources and capabilities. China should also help the countries along the border enhance their capabilities, expand their local financing capacity, and then launch large-scale infrastructure projects.

Overflow effect in Tai Wan area

Twenty-first Century: how do you think the Great Bay area of Guangdong, Hong Kong and Macau can play a role in promoting China's economic development?

Shamshad Akhtar: I think the Great Bay area is a great idea, and it needs a very systematic way to ensure its coordinated implementation, because it involves three different customs areas. At present, the internal links between the Tai Wan area are convenient. It is worth exploring how to promote the economic development of the bay area through the existing financial system and industrial structure. I visited many cities in Tai Wan district before. When I was in Hongkong, I visited the Cyberport and visited the start-up companies in the innovative incubator. What impressed me most is that people from different parts of the Bay are gathered in the Cyberport to explore how to help these start-ups operate and develop.

As one of the most active regions of the global economy, the Great Bay area is having a continuous effect. For example, Hongkong is a city with a long history of trade, a modern port, and a coordinated development and sustainable financing mechanism provided by the Hongkong monetary authority and Hongkong exchanges. If the mode of cross-border inclusive finance can be developed in the big bay area, it will be very advanced. Other cities or regions in China will also gain experience from the development of the Da Wan area. The big bay area can generate spillover effects in many areas.

Twenty-first Century: in order to deal with the downward pressure of the economy, many countries have implemented a loose monetary policy, and some economies have negative interest rates. What do you think of this?

Shamshad Akhtar: at present, the global market still has inherent weakness and fragility. The countries with systematic stability and importance have not yet put forward effective policies to deal with this crisis in time, and the fiscal stimulus measures are not as early as expected. Now, in different markets, the gap between infrastructures has not been effectively compensated, and the institutional reform of the industry has slowed down, which has led to less growth in productivity and lower competitiveness. Under this trend, there is a loss of confidence in global economic and economic governance. Each country must dig deep into the potential of capital markets, bring objective returns to savers, and allow investors to invest in venture capital.

Negative interest rate is the embodiment of monetary easing. Whether it is quantitative easing or reducing interest rates through the bond purchase plan, highly loose monetary policy has great risk. The financial system will push money into non productive investment, and capital will flow to speculation or low quality investment, which is necessary to effectively calibrate monetary easing policy.