(Yicai Global) May 16 -- In the finance field, China should promote new methods, develop innovative models, increase cooperation, build multi-layer platforms and set up a long-term, stable and sustainable security system with controllable risks to serve the One Belt, One Road initiative, Jiang Zhenghua, former vice chairman of the National People's Congress Standing Committee, said at the inaugural Belt and Road international forum on the sector yesterday.
Chen Yuan, vice chairman of the Chinese People's Political Consultative Conference, agreed. On the surface, the Belt and Road's construction focuses on investment and trade, but the key factor is monetary support, Chen said. Without efficient capital movement and financial services, it will be just empty talk, he said.
Financial institutions should encourage industry-finance partnerships, which organically bring backing to industrial chain players, to satisfy the Belt and Road's funding needs, Chen said. Industrial capacity cooperation requires economic support, and finance is set to serve businesses along the Belt and Road.
By working together on international production capabilities, China can export competitive, advanced and green capacity to other Belt and Road countries, which is in line with the global economic development trend and provides opportunities for them to benefit from China's development, Jiang said.
China should strengthen ties with other countries, construct an investment and funding system that combines inclusive and commercial finance, and let this system take priority, said Jiang.
"China has launched various types of commercial and financial collaborations with Belt and Road countries and relevant international financial institutions," said Jiang. "In particular, the yuan has become more globalized since the International Monetary Fund included the currency in the Special Drawing Rights basket in November 2015. Thanks to its stability, the yuan has become a recognized investment currency, which provides favorable condition for promoting the Belt and Road initiative."