2020 International Monetary Forum
2020-07-25 IMI
Liu Yuanchun, Vice President of Renmin University of China, delivered an opening speech. He pointed out that the epidemic has accelerated the fission of the global development pattern, and the deep decline of the global economy has led to a liquidity crisis in the global financial market. At the same time, China's economy and finance are facing new development opportunities. Therefore, in the window period of economic turmoil and the game of great powers, and in the context of escalating Sino-US conflicts, we will explore how to deploy a new pattern and new order based on the domestic economic cycle as the main body and the international and domestic dual cycles under the open system, so that the financial sector can further serve the rise, the rejuvenation and the high-quality development of China, and high-quality development, which has become an issue of the times that must be resolved: first, how to further open up financial services to better serve high-quality development; second, how to make China's financial further development and financial risks more controllable in the conflict between China and the United States; third, how to further internationalize the RMB, and on top of that, build an effective management system, supervision system and effective reform path.
Vice Chairman Kong Dan also delivered an opening speech. He said that the "2020 International Monetary Forum" is an important cooperation project between China International Cultural Exchange Center and Renmin University of China. The International Monetary Forum will surely become an important platform for promoting the “Belt and Road” financial cooperation and international exchanges in the new era. It will provide strong intellectual support and important decision-making basis for China to promote the internationalization of RMB and provide services and guarantees for “Belt and Road” financing. High-level financial think tanks of the Belt and Road Financial Cooperation Research Institute, IMI and the CITIC Foundation will focus on policies and frontier issues in the financial sector, coordinate efforts for China's financial reform and development under the new situation and new pattern, and contribute Chinese solutions to financial cooperation among the “Belt and Road” countries and in the world at large.
Professor Wang Fang, deputy director of IMI, interpreted the "RMB Internationalization Report 2020". She mentioned that according to the report as of the end of 2019, the RMB Internationalization Index (RII) has reached 3.03, a year-on-year increase of 13.2%. It has maintained stabilized in the changes in the world economic and trade structure and the adjustment of the international currency pattern. At present, RMB ranks as the sixth largest payment currency in the world, and is also one of the major currencies for international trade, international investment and financing, and one of the important international reserve currencies. The theme of this year's report is “How does Shanghai build a global financial center”. It explores the model selection, basic conditions and development strategies of Shanghai to build a global financial center from multiple dimensions such as the world and China, history and reality, opportunities and challenges in a comprehensive and in-depth manner. It is clearly stated that Shanghai should seize the favorable opportunity of the Fourth Industrial Revolution and become a global center city with the coordinated development of science and innovation center, economic center, financial center, trade center, and shipping center, leading China's high-quality development and high-level opening up. The internationalization of the RMB provides a solid foundation and lasting impetus. The report emphasizes: We must adhere to financial services to the real economy, and build “Shanghai Price” as a pricing benchmark for global RMB assets and RMB-denominated commodities; improve the business environment, gather world high-end enterprises and senior talents, and attract global high-quality capital and superior resources. We should also continuously pursue technological progress, lead global industrial upgrading, and promote the common development of all countries; We must use financial technology to build a financial supervision system that encourages innovation and balances risks, and improves the ability to respond to speculative impacts and manage major risks.
The keynote speech session was presided by Professor Zhang Jie, director of IMI. Deputy Mayor Wu Qing, Associate Dean Gao Peiyong, President of BOC Liu Jun, Former Chairman of CSRC Xiao Gang, Former Vice Chairman of CBIRC Wang Zhaoxing, Former Vice President of CDB Liu Kegu, Vice President of RUC Wu Xiaoqiu successively delivered speeches.
In his keynote speech “Strengthen Shanghai's Function of Allocating Global Financial Resources and Build It into a More Influential International Financial Center”, Wu stated that Shanghai has made significant progress after years of development as an international financial center. Shanghai boasts almost all functions as a financial center; it continues to be more open; financial reforms have been further advanced; the rule of law in finance and the regulatory environment are improving. All of these have laid a solid foundation for Shanghai to be a financial center with more global influence. He added that in the face of changes never seen in a century, Shanghai will build a more international financial market and enhance its function of allocating global financial resources from four aspects. First, it will build a center of RMB financial asset allocation and risk management. Second, it will improve the financial infrastructure based on the allocation of global resources. Third, it will establish a hub of coordinating onshore and offshore businesses by relying on the pilot free trade zone and new areas. Fourth, it will create a world-leading fin-tech innovation system and financial ecology.
Gao gave a speech titled “Analyze Current Macro-economy and Policies from a New Perspective”. He mentioned that we have to do a more thorough analysis since the macroeconomic situation is different from the one before the pandemic and one in the phase of high-speed growth. He pointed out that two aspects should be considered when analyzing the macroeconomic situation. First, we need to identify the changes brought by the pandemic and those regular changes by comparing with last year’s situation and our expectations before covid-19 pandemic respectively. Second, we need to formulate targeted macro-policies, accurately implement them and adopt different ones according to different obstacles, risks and challenges.
In his keynote speech “The Digital Dimension of RMB Internationalization”, Liu pointed out that the internationalization of a sovereign currency is anchored by its comprehensive national power. Sovereignty’s core competency decides how much say it has among all major reserve currencies regardless of the international monetary landscape. Classic theories of currency internationalization, however, have been challenged in practice. The future international monetary system is not only the combination of sovereign currencies but a new one in which digital and sovereign currencies coexist. The new version of RMB internationalization will surely be a competition in a digital system. In addition, changes in the evolution of digital currencies should be given due attention.
In the speech “Build a Global RMB Financial Asset Allocation Center through Multiple Measures”, Xiao believed that China being the global center of allocating RMB financial assets will help expand funding sources, deepen systems of market valuation and pricing, maintain the balance of international payments, and increase China’s voice in the global governance. He also pointed out that the reform in the financial market should be accelerated, RMB internationalization further promoted, the reform of yuan exchange rate and the capital account convertibility advanced in an orderly manner, and the regulation strengthened. Furthermore, Xiao said that we need to coordinate researches, take measures, perform well in the global coordination, and seek opportunities for cooperation while developing.
In his speech “Deepen Reform and Opening-up in Financial Sector to Build and Increase Core Financial Competency”, Wang mentioned that covid-19 made it harder for the world economy. Different from 2008, finance did not cause this crisis but rather became an important pillar for the economy to recover. Thus it is more urgent to reinforce the reform and opening-up and build the core competency in the financial sector. He also proposed some measures. First, relevant systems should be established to attract and keep top global talents in finance. Second, the financial structure should be optimized to improve the direct financing in capital markets. Third, the internal reform of financial institutions should also be strengthened. Fourth, China’s reform and opening-up needs to be faster to foster a better environment for building a global financial center. Fifth, RMB internationalization should be facilitated. Lastly, China needs to be more involved in setting international financial rules and the global financial governance.
Liu shared four views on the prospect of “Belt and Road” cooperation in his speech “Strengthen Cooperation between Real Economy and Finance to Boost Win-Win Cooperation and Harmonious Development among BRI Countries”. He believed that mutual complements and mutual benefits are the foundation for “Belt and Road” cooperation; mutual trust and mutual assistance is the core of deepening and upgrading the cooperation; the cooperation will be focused on key points and in diversified forms; a close and stable strategic cooperative mechanism guarantees an effective cooperation. He also elaborated experience and lessons learnt from global cooperation and his understandings of RMB internationalization.
In the speech “A New Financial Center Is the Goal for Capital Markets in China”, Wu stressed that China’s capital markets have made great achievements over 30 years’ development with a market capitalization of 50 trillion yuan. China already figured out why and how it should develop capital markets, and now it has to think over how it can build itself into a new international financial center. To this end, China needs to further advance market-oriented reforms and opening-up in capital markets; improve legal systems to demonstrate the rule of law; honour commitments; be transparent. Opening-up in the financial sector will be a major task, and reforms of RMB internationalization and opening-up in the financial market will be top priorities.
In the afternoon of the same day, three parallel forums were held at the same time, namely, “Joint Fiscal and Monetary Policies to Stabilize the Development of Market Entities”, “Shanghai Global Financial Center Building and RMB Internationalization”, and “Hardcore Epidemic Prevention and Control, A New Opportunity for Fin-Tech”.
Parallel Forum I: “Joint Fiscal and Monetary Policies to Stabilize the Development of Market Entities” is an online closed-door seminar, chaired by Ben Shenglin, co-director of IMI. Jia Kang, Dean of the China Academy of New-Supply Side Economics and former Director of the Research Institute for Fiscal Science, the Ministry of Finance; Wang Guogang, Professor of the School of Finance, Renmin University of China and Member of the Chinese Academy of Social Sciences; Zhao Changwen, Director-General of the Research Department of Industrial Economy, Development Research Center of the State Council; Wang Xin, Director of the People's Bank of China research bureau; He Dexu, Dean of the National Academy of Economic Strategy, CASS, and Liu Qingsong, former President of the China Institute of Finance and Capital Markets, delivered keynote speeches successively. The roundtable discussion was hosted by Qu Qiang, Director of the China Financial Policy Research Center. The guests taking part in this discussion include Wei Benhua, former Deputy Director of the State Administration of Foreign Exchange and former Director of the ASEAN+3 Macroeconomic Research Office (AMRO); Yang Zaiping, Deputy Secretary-General of the China Institute of Finance, former secretary-general of the Asian Financial Cooperation Association and former full-time vice president of the China Banking Association; Fang Xin, deputy governor of the Chengdu branch of the People’s Bank of China and deputy director of the Sichuan branch of the State Administration of Foreign Exchange; Feng Bo, secretary-general of the Financial Derivatives 50 Forum and Chairman of the Jin Yan International Consulting Company; Jia Junxue, Deputy Head of the School of Finance, RUC; Qian Zongxin, Deputy Secretary of the Party Committee, RUC, and Liu Ligang, Deputy Director of the “Belt and Road” Financial Cooperation Special Fund of China International Cultural Exchange Foundation.
Parallel Forum II: “Shanghai Global Financial Center Building and RMB Internationalization” was chaired by Tu Yonghong, Deputy Director of IMI. Jiao Jinpu, Chairman of the Shanghai Gold Exchange; Zhou Chengjun, Director of the Financial Research Institute of the People's Bank of China; Jin Yu, Chairman of the Bank of Shanghai; Ding Zhijie, Director of the Foreign Exchange Research Center of the State Administration of Foreign Exchange, and Ding Jianping, Deputy Director of the Shanghai Institute of International Finance Center and director of Research Center for Modern Finance, SHUFE, gave keynote speeches successively. The roundtable discussion was hosted by He Qing, professor of the School of Finance, RUC. More than ten guests participated and conducted in-depth discussions. They are Zhou Yueqiu, Director of the Institute of Modern Finance, ICBC and Secretary General of the China Society of Modern Finance; Wang Changyun, Dean of the Hanqing Advanced Institute of Economics and Finance, RUC; Xiao Geng, Professor of Financial Practice of Peking University HSBC Business School and President of the Hong Kong International Finance Society; Guo Jianwei, Editor-in-Chief of China Finance; Fan Xiwen, Chief Risk Officer of the China-Latin America Cooperation Fund; Guan Tao, Chief Economist of the Bank of China International; E Zhihuan, Chief Economist of the Bank of China (Hong Kong); Zhong Hong, Deputy Dean of the Bank of China Research Institute; Zhou Yinggang, Deputy Dean of the Wang Yanan Institute for Studies in Economics (WISE), Xiamen University; Di Dongsheng, Deputy Dean of the School of International Relations, RUC; Xia Le, Chief Economist for Asia of the Research Department, BBVA, and Xu Dong, Secretary-General of the “Belt and Road” Financial Cooperation Research Institute of China International Cultural Exchange Center.
Parallel Forum III themed “Hardcore Epidemic Prevention and Control, A New Opportunity for Fin-Tech” was chaired by Yang Tao, Deputy Director of National Institution for Finance & Development. Yang Hong, Secretary General of the Fin-Tech Committee of China Society for Finance and Banking and Former Inspector from the Technology Department of the People’s Bank of China, Gao Feng, Chief Information Officer of China Banking Association, Cao Tong, IMI Co-Chairman of Council, Wang Zuogang, General Manager of Public Affairs, Ant Group and Du Xiaoyu, Deputy Director, Tencent Research Institute delivered keynote speeches at the forum. Xue Hongyan, Deputy Director of Suning Institute of Finance, Ma Hongjie, Vice President of the Digital China Information Service Company Ltd., Yang Jingxiang, Chief Expert of DCITS, Wen Wu, Professor of Zhejiang University International Business School and Academy of Internet Finance and Former President of Standards for Digital Fiat Currency for Universal Financial Access, Guo Biao, Associate Professor of School of Finance, RUC and Deputy Director of Applied Finance Department and Zhu Taihui and other guests participated in the round-table discussion chaired by Yan Wentao, President of CCX Credit Technology. The third forum was co-organized by IMI, Renmin University of China and CFT50.
This year’s forums were co-organized by CFT50 and CBF50, receiving support from Chongyang Investment Foundation of Renmin University of China and the chief cooperation platform Xinhua Finance. Other media including Baidu App, Sina Finance, ljzforum.com, Toutiao, people.cn, Sohu Finance, National Business Daily, China Report, Yidianzixun.com, cebnet.com.cn, South China Morning Post, Financial Times, Securities Times, China Banking and Insurance News, China Daily, China Economic Herald, Economic Information Daily, Ta Kung Pao, Wenhui Daily, International Business Daily, China Finance, Trade Finance, Government Finance and Trade New Time also lent their support.
It is reported that the International Monetary Forum is an international annual forum sponsored by Renmin University of China. It has been held for 9 consecutive years since 2012. The forum publishes the Annual Report of Renminbi Internationalization and stimulates in-depth discussions about the essential theories and phenomena regarding international finance. It has attracted many well-known experts and scholars from research institutes in Europe, America, Asia, Africa, etc., government agencies and financial institutes for extensive discussions. Since the forum was first convened, it not only pays close attention to domestic financial hot spots but also extends its discussion to the international community. It focuses on the internationalization of RMB, explores the currency crisis in emerging markets, discussed in depth the international market trend. The forum encourages the exchanges between Chinese and foreign ideas and the remarkable insights from chief economists, keeps pace with the times and focuses on technological development, drawing a big match between theories and practices.
