Resources Pooled in Shaanxi to Establish Financial Platform for Enterprises

2017-09-13 09:36:27 , Source : The Government Website of Shaanxi Province

2017 China Xi’an Financial Exposition

The consensus that “financial activity enlivens economic development” was reached by experts attending the 2017 China Xi’an Financial Exposition and the New Silk Road Summit Forum for Financial Cooperation held in Xi’an on Sept. 8. As the starting point of the ancient Silk Road and the center of the Belt and Road, Shaanxi Province has taken the lead in building new heights of reform and opening-up in inland areas and establishing China Pilot Free Trade Zone. Endeavors made in financial integration (one of the five focuses proposed by the Belt and Road) have perfectly served the economic development along the Silk Road Economic Belt.

The integration of “government, bank, enterprise and insurance” to promote overseas development

During the forum, Huo Jianguo, former dean of Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce commented that to reach consensus through extensive consultation is easy, while the rejuvenation of business exchange and communication along the Silk Road is an enormous project which needs financial support in reality.

With the deepening of exchange and cooperation in economy and trade between Shaanxi and countries along the Silk Road, it becomes an inevitable trend to further strengthen financial communication and cooperation. Bai Hexiang, President of Xi’an Branch, the People’s Bank of China, mentioned that resources both home and abroad could be used to serve the construction of the Silk Road Economic Belt in Shaanxi. On one hand, financial institutions from countries and regions along the Silk Road Economic Belt will be encouraged to establish branch companies in Shaanxi; and on the other hand, competitive financial institutions should reinforce overseas layout and participate in international financial cooperation projects to better serve Shaanxi enterprises to “go global”. The relationship of acting bank between domestic banks and banks along the Road should be established and strengthened to offer win-win cooperative model covering services such as cross-border transfer, capital management, check settlement, loan and loan transfer and LC. The great demand for capital in diversified models during joint contribution requires innovative financial cooperation. To meet the demand of building a new starting point of the Silk Road Economic Belt, Shaanxi financial institutions have made every endeavor to offer all-round and multilevel financial support through establishing financing mechanism, financial products innovation, and supporting enterprises to issue overseas bonds.

Shaanxi Branch of China Development Bank and Shaanxi Provincial Department of Commerce have signed Overseas Investment Strategic Cooperation Agreement to establish a financing mechanism for overseas development characterized by the integration of “government, bank, enterprise and insurance”. In 2017, Qinnong Bank and Shaanxi Rural Credit Cooperatives Union have taken the lead in establishing the “Silk Road Rural Commercial Bank Development Alliance” together with 35 rural commercial banks in Shaanxi and 18 rural commercial banks along the Road in 10 provinces, automatous regions and cities and successfully published the phase 1 project of “Silk Road Alliance-Joint Investment Plan” to support the construction of Silk Road Economic Belt.

“Xi’an Hi-tech Industries Development Zone, Xi’an Fengwei New Area, and Chanba Ecological District & Xi’an Qujiang New District” to form the “Golden Triangle” in Xi’an

Based on a widely used news APP and the big data statistics, the search frequency of keywords Xi’an and finance ranked the 5th in China, which showed not only the close relationship between Xi’an and finance, but also the benefits of Silk Road Economic Belt construction in Xi’an.

At present, oriented by the strategic positioning of Shaanxi Province, Xi’an has integrated the provincial resources and industries to seek featured and differentiated progresses in building regional financial center along the Belt and Road. The “Golden Triangle” in Xi’an has been proposed and according to which Xi’an Hi-tech Industries Development Zone will be built into a financial center, Xi’an Fengwei New Area into an energy and financial zone, and Chanba Ecological District and Xi’an Qujiang New District into a cultural and financial pilot zone.

Shaanxi Province is rich in sci-tech resources and Xi’an has been listed among National Comprehensive Innovation and Reform Pilot Areas. With advantages of financial technology and Xi’an Hi-tech Industries Development Zone as the center, Xi’an will provide customized financial products in light of practical conditions of sci-tech enterprises to establish an integrated investment and financing system.

The theme of “2016 China Xi’an Financial Exposition” was “Promoting the New Silk Road through Culture and Finance”, which indicated that the financial industry in Xi’an followed the strategy of “strengthening Shaanxi Province through culture industry” and took the advantages of historical and cultural resources in promoting cultural and financial innovation and reform in terms of cultural industry financing guarantee and leasing, cultural investment foundation, cultural trust and insurance.

In addition to culture and finance, Xi’an Fengwei Energy and Financial Zone has also become the focus for future financial industry development in Xi’an. Jia Jinjing, member and Dean of Chongyang Institute for Financial Studies, Renmin University of China, commented that the system of Petro & Dollar is now upgrading into New Energy & RMB. Relying on the advantages of being in a favorable position for energy cooperation with countries and regions along the route, Xi’an will establish Energy Pricing Center, Energy Investment and Financing Center, Energy Risk Management Center and Energy Trade Cross-border Yuan Settlement Center with major influences.

The integration of “regulation, system, product, service and management” to promote “the free trade zone”

One of the prime focuses of China (Shaanxi) Pilot Free Trade Zone is to facilitate and streamline trade and investment. The zone has played a prominent role in promoting the opening-up and the Silk Road Economic Belt construction in Shaanxi and will fulfill its mission through strengthening the free circulation of RMB in the process of the Belt and Road construction.

Major financial institutions in Shaanxi have accelerated the pace of financial reform to meet the construction demand of the China (Shaanxi) Pilot Free Trade Zone since its foundation half a year ago. Xi'an Branch of the People's Bank has promoted innovations in financial system, financial organization system, financial products & service model and foreign exchange management to better serve the Belt and Road, the West Region Development of China and the Silk Road Economic Belt. With a global layout and perspective, China Merchants Bank has streamlined project and investment services and offered cross-border capital business, credit underpinning, settlement and financing services to better serve bilateral investment between Shaanxi and countries along the route in fields of overseas construction projects, labor cooperation and import & export of supporting equipment.

The purpose of financial reform and innovation in the zone is to establish a streamlined financial service system compatible with cross-border trade and investment practices. More efforts will be made in foreign exchange management process optimization, trade and investment facilitation, and the Yuan pricing & settlement in cross-border trade to promote financial and currency integration in Silk Road Economic Belt construction.

The development of financial industry in terms of policy-making and practice in Shaanxi has promoted the Belt and Road construction. Xia Bin, the President of China Chief Economist Forum considered that the financial reform and innovation, which would serve the opening-up in China and promote the financial innovation in countries and regions along the Silk Road during its process, will achieve the ultimate goal of “mutual sharing” in the long term.

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