Confusing process all the way along the money supply article Zhou Xiaochuan proposed eight aspects of support

Rich and diverse investment and financing mechanism to build a "along the way" an important prerequisite。  A signed article in People's Bank of China Governor Zhou Xiaochuan recently on "China's financial" magazine published "to jointly build a" along the way "investment and financing cooperation system" that "along the way" involves the construction of a large number of infrastructure and industrial cooperation alone difficult for governments to provide adequate funding。To enrich and make good use of a variety of investment and financing, and to mobilize market forces along the country's push to build market-oriented, sustainable, mutually beneficial investment and financing system, providing long-term financial support for "all the way along the" building。  According to the existing practice, Zhou Xiaochuan proposed contents of eight aspects, including the use of development finance to promote the network layout of financial institutions and financial services, mutual establishment of financial institutions, financial services docking, China Unicom capital markets, financial infrastructure Unicom, play the role of international financial centers, play an active role in local currency。  From another perspective, "along the way" initiative also opens up new space for development of domestic and foreign financial institutions。First Financial Correspondent in an interview that, at the end of 2016, workers and peasants in four rows for "along the way" project all kinds of credit support more than $ 200 billion。  A person in charge of the central enterprises overseas CBN reporter said that the current investment along "along the way", the mainly domestic bank financing, but if the project much needed money, cash is not enough, sometimes need to issue bonds overseas。For businesses have complained about the problem of foreign investment approval tightened, he said: "In the past a lot of central enterprises out of real estate investment, culture or something, but as long as the main industry, the normal approval no problem。"Development finance can play an important role in Zhou Xiaochuan pointed out that for a long time, the international community lending and other preferential financial support measures for developing countries using more。However, preferential loans to financial subsidies at the expense, subject to terms of financial, legal, etc. Therefore, most countries do not have adequate financial resources to provide long-term, large-scale foreign financial assistance。  In addition, preferential loans also may lead to moral hazard recipient, recipient countries lack the resources to explore their own economic growth momentum, and comparisons mentality of dependence on financial support, and may even cause market distortions, limit the effective allocation of resources could eventually constraints developing countries。  Zhou believes that most "along the way" project construction period is longer, if financing is not sustainable, an interrupt occurs, not only will affect the progress of the project and the economic benefits, and may even adversely affect the political。This requires countries to make concerted efforts along, market forces and government to promote effective docking, providing long-term sustainable funding。  In recent years, with the vigorous development of China Development Bank (hereinafter referred to as "CDB"), represented by development financial institutions, it has become an important partner of many developing countries to finance。Development finance is different from the type concessional loans, but also different from commercial finance, is a unique form of financial。  Zhou believes that the development of Chinese-style financial business in order to open the representatives of behavior has multiple advantages, can play an important role in the "area all the way" in financial intermediation。First, do not rely on government subsidies to make their own decisions, and can be connected to the government and the market, integration of all resources; second is to focus on long-term, can provide long-term credit support to the specific needs of persons; third is to play a leading role model for the commercial capital, in a market-oriented approach to support。  The beginning of reform and opening up, due to limited financial resources, China provided subsidies and aid to less developed financial institutions。The late 1990s, CDB support infrastructure, basic industries, pillar industries and later support enterprises "going out", inclusive finance, student loans, and other poverty alleviation projects fall within the scope of development finance, do not rely on financial subsidies to achieve sustainable development。In recent years, China Development Bank, Bank of China along "along the way" to carry out a number of cooperation projects, which is different from the conditions of the loan lending, not exactly the same as commercial financing。  Zhou Xiaochuan said China has initially explored a path of development finance, while meeting national service strategy, relying on credit support, do not rely on government subsidies, market-oriented operation, self-management, focus on long-term investments, guaranteed profit, there are financially sustainable and so on target, between commercial and concessional funding formula, is more interested in commercial。  He believes that "along the way" construction projects with a long payback period, the size of the huge demand for funds and other characteristics, with market-oriented operation, financial sustainability and focus on the advantages of long-term investments and other development finance can play an important role in this。  Financial services interoperability post-2008 international financial crisis, financial institutions in developed countries due to lack of motivation and self-protection and other reasons, it is difficult to provide adequate financial support for "all the way along the" construction and mode of operation of financial institutions in developed countries, business philosophy, financing conditions are also not fully fit, "along the way" along the country needs。  In this regard, Zhou Xiaochuan believes that it is necessary to play along the country together, to promote financial institutions and financial service distribution network, including the mutual establishment of institutions, financial services docking, China Unicom capital markets, financial infrastructure Unicom, between financial regulatory authorities exchanges and cooperation。  CBN reporter learned that the current domestic enterprises to go facing foreign banks, Chinese banks a number of options。Some bank branches throughout along "along the way", while local legal environment, a better understanding of local customs, received a large number of domestic enterprises of all ages。The acquisition "along the way" along the local banking financial institution, perhaps a fast track cut into the local market channels。  In the case of the mutual establishment of agencies has not been implemented, "along the way" to establish and expand the agency relationship is to help the country access to financial services among countries along the banks of an important channel。Other "along the way" the construction of supporting financial services include syndicated loans, financial clearing and settlement, project loans, account management, risk management, etc.。  Zhou Xiaochuan also suggested to play a role in local currency "along the way" construction。He believes that the use of local currency in favor of mobilizing local savings and global funds, help to reduce exchange costs。The receiving State funds can be used directly his country's currency to buy the currency issuing country's products, saving exchange costs, the future can also use this money to repay the debt financing。  Since 2008, China has signed currency swap agreements with more than 30 countries and regions, including 22 "along the way" along the country。China still 23 countries and regions to establish a local RMB clearing arrangements, designated the local RMB clearing bank, of which 7 is "along the way" along the country。  "Do well, but also to go Province。"August 2016, Chinese enterprises widely cultivated rubber Group and Thailand, Thailand and China signed a strategic cooperation gum company, financed the acquisition with equity holding operation on the way to achieve Taihua gum company, the total equity investment of 1.8 billion yuan。As Thailand is currently the largest number of institutions, the biggest business scale Chinese banks, ICBC overseas subsidiary bank ICBC Thailand played an important role。  "Direct use of the RMB exchange baht, for it once, (for) the parent company for the purchase of foreign exchange would not have, so that not only more convenient, but also no currency exchange risk, and if the first for the dollar with the yuan, then US dollar swap with the Thai baht, there are two convertible currency 7-8 point difference。"President Director Taihua gum (VW) Co., Ltd. Lin Shengrong representation。  ICBC Bank of Thailand use the designated Bangkok RMB clearing bank status, it provides a fast and convenient cross-border RMB remittance channel is widely cultivated Rubber Group, of which 700 million yuan of funds liquidation through ICBC Thailand in the form of direct yuan, to the widely cultivated rubber Group, overseas acquisitions and international strategy to bring great convenience。  "Along the way" along with investment-related investments "along the way" project is growing。  According to the latest statistics of China's Ministry of Commerce, in the first quarter of this year, China has a new non-financial along the route "along the way" direct investment in 43 countries, totaling 29.$ 500 million, accounting for 14 of the total over the same period.4%; and 61 countries along the route of foreign contracted engineering project contracts 952 copies, 222 new contracts signed.$ 700 million, accounting for the same period of the new contract amount of China's foreign contracted projects 51.8%, turnover 143.$ 900 million, accounting for 49 of the total over the same period.2%, an increase of 4.7%。In the first quarter, "along the way" along with China National Investment newly established enterprises 781, an increase of 40%, the actual use of foreign investment 84.500 million yuan。  Jin Qi, chairman of the Silk Road Fund recently said that after the first single investment that is involved in Jincheng Li Silu Ji "along the way" toward Pakistan economic corridor of clean energy projects – Supporting Investment Group Three Gorges hydropower station construction in Pakistan Trent Lott card。  Since then, Sino-Russian energy cooperation, the Silk Road Fund has purchased Yamal LNG Integrated Project 9.9% stake and provide special loans, shares a vertically integrated gas processing and petrochemical company SIBUR company; in West Asia, North Africa, Silk Road Fund to join HEC Group Investment Dibai Ha Cheung clean coal-fired power plant projects, open up "along the way" along important Middle East market; in Asia, the Silk Road Fund and the world Bank Group's IFC funds to carry out cooperation, carry out industrial investment in emerging economies in Asia; in Europe, the Silk Road Fund to support China Chemical investment Italy Pirelli company to enter the high-end manufacturing, and as a cornerstone investor to invest a focus on the emerging industry investment fund in France FCValueTrail。  Up to now, Silk Road Fund has implemented 15 projects signed, the amount of investment commitments totaled $ 6 billion investment covers Central Asia, South Asia, Southeast Asia, West Asia and North Africa, Europe and other regions along "along the way" in infrastructure , resource development, industrial cooperation, financial cooperation were involved in four major areas。In addition, the Silk Road Fund has also funded the establishment of a separate $ 2 billion in production capacity in Kazakhstan Cooperation Fund。  UN officials UNCTAD Investment Division Liang Guoyong First Financial correspondent, said in mid-2017 corporate merger control would be more stringent, because the acquisition targets, mainly in Europe, the US and Europe to reduce the scale of investment will。But the other side of the coin is that greenfield investments (also known as create investment refers to investment entities such as multinational enterprises established by the law of the host country in the territory of the host country, and some or all of the company's assets are owned by foreign investors all) will be positive growth。Emerging markets in developing countries, investments may increase。Among these, "along the way" it is an important reason。

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