The first event of the “Lujiazui Financial Salon” focusing on the game between major powers, exchange rates and the construction of Shanghai’s international financial center was successfully held

Financial Union, March 1 Today, the first event of the Lujiazui Financial Salon with the theme of “Opportunities and Challenges: The Game of Great Countries, Exchange Rates and the Construction of Shanghai International Financial Center” was successfully held in the Shanghai Center. Experts attending the meeting and representatives of Chinese and foreign financial institutions expressed their opinions and conducted in-depth analyses on key issues such as Pudong’s challenges and opportunities in building an international financial center, and jointly provided suggestions for the development of the financial sector.

This event was guided by the Financial Office of the Shanghai Municipal Party Committee and the People’s Government of Pudong New District of Shanghai City, hosted by the Secretariat of Lujiazui Financial Salon, and received strong support from the Shanghai City Banking Association and China Insurance Industry Association.

Promoting institutional opening up is an important starting point for the construction of Shanghai’s international financial center

At the salon, Guan Tao, global chief economist of BOC Securities, was the guest speaker and delivered a speech with the theme of “The Game of Great Powers and the Construction of Shanghai’s International Financial Center.” He pointed out that the international financial center is an important part of the construction of Shanghai’s five centers, and building a strong international financial center is Shanghai’s historical mission.

Combining the latest trends in the game between major powers and the foresight of the RMB exchange rate, Guan Tao said that steadily promoting institutional opening up is an important starting point for the construction of Shanghai’s international financial center. Institutional opening up must improve the business environment and promote the development of China’s financial market. Regarding the high-level institutional opening up of the capital market, Guan Tao believes that this is the proper meaning of implementing the Party Central Committee’s deployment, improving the high-level institutional mechanism for opening up to the outside world, and promoting high-quality economic development. Promoting high-level institutional opening up of the capital market should follow the six principles of putting ourselves first, facing the international world, basing ourselves on the local world, facing the market, promoting overall, and putting safety first.

Lian Ping, Chairman of the China Chief Economist Forum, President and Chief Economist of the Chief Industry Research Institute of Guangkai, Vice President of the Shanghai Institute of New Finance, Professor of the Shanghai School of Advanced Finance of Shanghai Jiao Tong University, Vice President of the China Financial Research Institute of Shanghai Jiao Tong University, Tu Hong, Business Director of the Head Office of Bank of Communications and President of Shanghai Branch, and Zhang Jinqiu, Vice President of HSBC Bank (China) Co., Ltd., delivered keynote speeches respectively.

In Lian Ping’s view, building an international financial center requires grasping the four pairs of needs and needs. It is necessary not only to deepen the opening up of financial markets, but also to pay attention to the pace of market opening; not only to promote innovative development in the financial sector, but also to prevent the risks that innovation may bring; not only to seize the opportunity to promote RMB internationalization, but also to steadily and cautiously promote RMB free convertibility under capital; it is necessary not only to moderately enhance the flexibility of the RMB exchange rate, but also to pay attention to the extent of exchange rate fluctuations.

Liu Xiaochun put forward his opinions on the competitiveness and influence of Shanghai’s construction of an international financial center. He believes that the competitiveness of a strong international financial center lies in the attractiveness of investment and financing, financial innovation capabilities, pricing power, etc. As an international financial center, Shanghai should radiate to Southeast Asia and countries and regions co-constructing the Belt and Road Initiative to provide all-round financial support and services for China companies to go abroad and build the Belt and Road Initiative.

The construction of Shanghai’s international financial center and the construction of science and technology innovation centers are linked to each other. Tu Hong said that banks are patient capital suitable for serving technology companies. As long as the investment culture is organically integrated into the bank’s credit culture and the equity thinking is organically integrated into the debt thinking, In order to better serve new productive forces, commercial banks are suitable as patient capital because of their strong capital strength and relatively stable risk management capabilities.

From the perspective of foreign-funded institutions, Zhang Jinqiu suggested that Shanghai’s international financial center construction should continue to strengthen institutional support, further improve the policy environment, improve the business environment, strengthen government-enterprise communication, and optimize the policy formulation process. Encourage scientific and technological innovation and industrial upgrading, and develop strategic emerging industries. Expand financing channels for innovative and entrepreneurial enterprises and create an active venture capital atmosphere. At the same time, green finance is used to strengthen connectivity with international financial markets, attract international financial capital, and encourage multinational companies to participate in Shanghai’s ESG construction.

Enriching the product toolbox, financial institutions help companies better manage foreign exchange risks

Subsequently, chaired by Guan Tao, Lian Ping, Liu Xiaochun, Tu Hong and Zhang Jinqiu held an industry dialogue with the theme of “Building Shanghai International Financial Center: Open Policies and Capital Flows.”

During the dialogue, Lian Ping pointed out that institutional opening up focuses more on institutional construction and needs to reduce relevant restrictions on the flow of financial factors. Related areas that can be adjusted include financial market systems, financial supervision rules and financial laws and regulations.

Liu Xiaochun believes that the construction of Shanghai’s international financial center should set reasonable short-and medium-term goals to serve the Belt and Road Initiative blueprint, such as allowing countries co-building the Belt and Road Initiative to issue bonds and shares in mainland China.

Tu Hong further proposed specific measures for banks to support scientific and technological innovation as patient capital. They should introduce the rules and culture of equity investment into the existing system of commercial banks, and adjust values and methodologies in place so that banks dare to invest, are willing to invest, and can invest., do a good job in investment banking business. In terms of helping deal with foreign exchange fluctuations, Tu Hong believes that companies must understand the source of exchange rate risks and determine risk preferences. Financial institutions can help companies hedge and manage exchange rate risks through multiple exchange rate tools.

From the perspective of foreign banks, Zhang Jinqiu believes that high-level opening up still needs to be driven by institutional opening as the core and benchmark international rules to build an efficient regulatory framework. High-level opening up must continue to pay attention to the optimization of the business environment and living environment. In terms of optimizing the business environment, we must establish a sound regulatory environment, a competitive tax system, and a stable legal system. In terms of exchange rate risk management for Shanghai International Financial Center construction and service enterprises, Zhang Jinqiu suggested starting from three aspects: enriching the toolbox for exchange rate risk, optimizing the ecology of risk management, and setting up a special treasury management center to manage the company’s own foreign exchange positions. Attracting more companies to set up or move treasury centers to Shanghai will surely further enhance Shanghai’s status as an international financial center.

The first event of the Lujiazui Financial Salon came to a successful conclusion, but the journey of building Shanghai’s international financial center is always on the road. Through the guests ‘insights, Shanghai not only heard a clear understanding of the challenges of building an international financial center, but also saw firm confidence in opportunities. In the future, we hope to use the launch of the Lujiazui Financial Salon as a starting point to help Pudong New District further play its role as the core area in the construction of Shanghai’s international financial center and jointly write a new chapter in the construction of China’s financial power.