(Yicai Global) Sept. 12 -- China-Russia financial cooperationisproceedingsmoothly,but not fast enough, and more efficient financingfromcapital marketsis necessary for the businessesand projectsthecountries areworkingontogether,saidformer People's Bank of ChinaGovernorZhou Xiaochuan at the Eastern Economic Forumin Vladivostok, Russia today.

Moscow-headquartered aluminum giantUnited Company RUSAL listed in Hong Kong last year, andtheShenzhen-Hong Kong and Shanghai-Hong KongStockconnectshavealsoopened,andthus Chinese investors cannowinvest in RUSAL'sstock. Chinese investors havetraded on theMoscowExchange,but made slow progress. Many foreign sovereign debtinstrumentsand corporate bonds have issued in the Shanghai market,but thoughnegotiationsbetween China and Russia have been ongoing for three years in this area,none havebeen forthcoming with the utmost dispatch that is needed, Zhousaid.

China has closer cooperation with Russiawith Shanghai-basedChinese financial services companyUnionPay,and hasmadegreat strides in the payment area,butmuch remainsto do.Faster progress inthevital areasof e-payment and digital paymentis still possible, Zhou said.

"Yuanandrublescan be transmitted to commercial banks and enterprises to gainsupport from local liquidityforpayment, according to the Local Swap Agreement between the People's Bank of China and the Central Bank of Russia. We canthereby achievefaster progress in this regard," Zhou said.

The private savings ratio and private funds aregoodin Russia, Central Asiancountries andAssociation ofSoutheastAsianNationsand other countriesand areasrelevantto theOneBelt, OneRoad, so good useshould be madeof theseprivate funds to overcome theproblem of insufficientinvestment, Zhou believes.

He deems most Belt and Roadprojectscommercially viable.Thecountriesinvolvedshouldbolstercommunication andcooperationbetweenfinancial institutions andusestocksand bonds asfinancing vehicles. Their governmentsmustdo wellin threeareasin future. First,theymusteffectivelyfirm upcooperation between financial institutionsandattract non-governmental funds to participate in Belt and Roadconstruction. Second,they shouldpromote theuse of currencyofthe country whereaproject is locatedfor direct financing and settlement. Third, theymust topay attention to reasonable pricing and management efficiency afterprojectcompletion, reduce unnecessary costs and improveratesofreturn.

The 4th Eastern Economic ForumrunsfromyesterdaytoSept.13.

Editor: Ben Armour