Film Insiders Explore Ways to Tap Market in New Silk Road Era Tue March 31, 2015 China's "New Silk Road" initiative has been widely heralded for its potential to reshape Asia's economic landscape. Ma Runsheng, a renowned director and producer from Beijing, believes it will also have a profound impact on the region's movie and entertainment industry. "A Bite of China has been translated into 9 languages and aired in more than 70 countries and regions. Each single episode of the documentary has been well received. So I was considering whether we could produce A Bite of Asia, or A Bite Along the Silk Road, to introduce Asian food in new areas. That would be delicious. " Aired in 2012, A Bite of China is a series of food documentaries telling the histories and stories behind Chinese cuisine. It was a big hit and has drawn millions of viewers online. Ma Runsheng also has a suggestion for what filmmakers can do to promote their works globally. "You can introduce your productions to us and we can translate them and distribute them to other countries, so they can be appreciated by global audience without language barriers. I also hope good Chinese movies, TV dramas, animations and documentaries can be played in overseas TV channels." Yasushi Shiina, Director General of Tokyo International Film Festival, says movies have no boundaries. "Movies provide a diverse platform for Asian countries to exchange ideas and understand each other better." Director of Busan International Film Festival Lee Yong-Kwan says they have learned a lot from the region's film festivals. "We have set up trans-national movie foundations to invite students to go abroad to study and travel, so they can learn others' cultures and in return, put their knowledge into practice." India's "Bollywood," Japan's "J-pop" and South Korea's "K-pop" have already established their names globally, while the ASEAN countries, strategically located on the first leg of the "New Silk Road", have committed to opening their film markets this year. Asia's movie industry is booming as the world's largest and fastest growing film market. Last year, combined box office receipts in this region accounted for 80 percent of all global growth in the sector. For CRI, this is Li Jing in Hong Kong. http://english.cri.cn/12394/2015/03/26/2361s871694.htm
2015-04-13The "New Silk Road" for film industry should not just be targeting the Chinese market, but for all Asian countries to develop in tandem, panelists said at a forum at the Hong Kong Filmart. The purpose of the forum is to find out how Asian film can collaborate and compete with each other to create a bigger Asian film industry. Based upon by the "New Silk Road" concept proposed by Chinese president Xi Jinping in 2013, that encompasses economic ties and infrastructure construction between China, its Asian neighbors, the Middle East and Europe, the forum focuses on the difficulties facing pan-Asia and East-west co-productions. "We need to set up a fund across Asia that will start new projects. This fund can be set up and a lot of government agencies and business institute can join as well. We can accelerate the development of the Asian film industry. This is also what Xi Jinping mentioned as the new Silk Road. The new Silk Road should not just be targeting China, but all Asian countries to develop in tandem," said Lee Yong Kwan, Busan International Film Festival director. For each of the Asian countries' film industries, films have to gain traction first in their countries of origin then expand. "Films' first market is the local market. In the future, we have to penetrate the Asian market first then the North American market," said Zhu Huilong, CEO of Heyi Pictures and senior vice president of Youku Tudou Inc of China. "The first sign of success is to gain a foothold in your own market, then it's for the neighbors because there are more commonalities," said Raymond Zhou, columnist and film critic of China Daily. Much has to be overcome to create co-productions in Asia. "It is much easier to invest in new infrastructure, but for creative industries, you have to overcome a diverse group of languages, cultures, people with different taste and ages. It's not as easy to create a Silk Road just by investing," said Wilfred Wong, chairman of the Hong Kong International Film Festival Society and the Asian Film Awards Academy. The way ahead for co-productions is not only targeting China, but other emerging markets as well. For example, Thai films are gaining popularity in the countries' neighboring regions, namely Cambodia and Vietnam, said Thailand's Pantham Thongsang, Deputy secretary for Academic Affairs, The National Federation of Motion Pictures and Contents Association. So the country's Transformation Film is working with South Korea's CJ Entertainment to produce films that will travel to Southeast Asia. While the concept of co-productions is not new, movies created as collaborations between different regions run the risk of being everything to everyone but nothing to all, said William Pfeiffer, CEO of Hong Kong-based Dragongate Entertainment. "Movies try to hit all targets end up hitting none of it," said Pfeiffer. Some are skeptical of the co-production phenomenon due to the lack of success stories for co-productions in recent years. "The most successful Japanese co-production was Merry Christmas Mr. Lawrence in 1983, and that was thirty years ago, said Yasushi Shiina, Tokyo International Film Festival director general. But Shiina also admitted co-productions are the way forward, as the Japanese population is aging, its film market is facing a 30% decrease in market revenue. "Films that are 100% made in Japan is coming to an end," said Shiina. The Holy Grail is to find a movie that works in different regions, said Clifford Coonan, Asia Bureau Chief of The Hollywood Reporter. Coonan named the upcoming Zhang Yimou–directed film Great Wall that will star Matt Damon, Willem Defoe, and Andy Lau as a test case for the future. "The film has an international cast, so that's possibly the way forward, that would work both in China and overseas. It will be a test case of how things can work in the future." http://www.hollywoodreporter.com/news/hong-kong-filmart-new-silk-784218
2015-04-09Asian Film Captains Tap Potential Market Growth in the New Silk Road Era MAR 25, 2015, Hong Kong – More than 300 delegates from the movie industry around the world attended the China Daily Asia Leadership Roundtable Panel on “The New Silk Road of Asia’s Film Industry: Challenges, Opportunities and Partnership” at 10.00AM to 12.30PM at FILMART. We are delighted to work with Hong Kong Trade Development Council again and to be the Media Partner for FILMART 2015 for the third consecutive year. China’s “New Silk Road” initiative is widely valued for its potential in reshaping Asia’s economic landscape forAsian Film Captains Tap Potential Market Growth in the New Silk Road Era growth and prosperity in the 21st Century. As such, it is expected to have a profound impact on the region’s movie and entertainment industry that has already embarked on a new phase of expansion in a scale unseen before. Asia is already well-‐established as the world’s largest and fastest growing film market. In 2014, combined box office receipts in this region amounted to $4.7 billion, accounting for 80 percent of the global growth. On the Chinese Mainland, investment in the film industry and box-‐office gross has been increasing by leaps and bounds in each of the past several years. Meanwhile, the ASEAN countries, strategically located in the first leg of the “New Silk Road” have committed to opening their film markets by the end of 2015 under the ASEAN Economic Community agreement. Elsewhere in the region, India’s “Bollywood,” Japan’s “J-‐pop” and South Korea’s “K-‐pop” are already making significant inroads into the international marketplace. Mr. ZHOU Li, Publisher & Editor-‐in-‐Chief of China Daily Asia Pacific believed that the rapid development of China’s film industry in alignment with President Xi’s ‘New Silk Road’ initiative will make recognizable contribution to the growth of Asia’s film industry. Mr. Zhou welcomed the distinguished keynote speakers together with Mr. Raymond YIP, Deputy Executive Director of Hong Kong Trade Development Council including Dr. Wilfred WONG Ying-‐Wai, Chairman of Hong Kong International Film Festival Society, Chairman of Asian Film Awards Academy & Vice Chairman of Hong Kong Film Development Council; Mr. LEE Yong-‐Kwan, Festival Director of Busan International Film Festival; Mr. Yasushi SHIINA, Director General of Tokyo International Film Festival and Dr. MA Runsheng, President of China Radio, Film and Television Program Exchange Center. Wong expressed that the current task for the film industry in Hong Kong would be to groom a new generation of professionals and audiences. Ma echoed Wong’s perspective about Asia’s film industry; he hoped that in the future, shows produced in and by China could be seen in most channels around the globe to present the life in China. Lee mentioned Asian movies have always played an important role in the global market; however, communication within the region was hindered by cultural and political barriers. In contrast, Shiina stressed each movie was a medium to arouse interests for cultural communications. That’s why it should have no national boundaries at all. Seven panelists from across Asia including Mr. Pantham THONGSANG, Deputy Secretary for Academic Affairs of The National Federation of Motion Pictures and Contents Associations, Thailand; Mr. LI Yansong, President of iQIYI Motion Pictures and Vice President of iQIYI.com, Inc; Ms. Ann AN, President of Desen International Media; Mr. ZHU Huilong, Chief Executive Officer of Heyi Pictures, Senior Vice President of Youku Tudou Inc; Mr. William PFEIFFER, Chief Executive Officer of Dragongate Entertainment Ltd; Mr. Clifford COONAN, Asia Bureau Chief of The Hollywood Reporter and Mr. Raymond ZHOU, Columnist/Film Critic of China Daily further discussed the challenges and opportunities from their own industry perspectives. Li said the Internet can play a bigger role in the film industry, like launching crowd funding and providing advanced ticket booking. Zhu also stated that in western countries, the success of a film was not reflected only by its box office but also by its sales in an array of merchandises -‐ from mugs to T-‐shirts. This is the area that Chinese producers can pay more attention to as it has a lot of potential. Thongsang believed Thailand can be the gateway for China to other Asian countries, while in return; Thailand films can also enter the Chinese market through its good story ideas.
2015-03-26亞洲三大電影節主席齊聚中國日報論壇 共同探討亞洲電影市場合作與發展新機遇 2015 年 3 月 25 日,香港 –中國日報亞洲領袖圓桌論壇今天第三次攜手香港國際影視展,舉辦題為「亞洲 電影業的絲綢之路:挑戰、機遇與合作」的專題論壇,邀請了香港、釜山、東京電影節主席,以及亞洲 電影業的領軍人物共同探討新絲綢之路時代下亞洲電影市場發展前景並吸引了逾 300 名參會者出席。 中國電影過去十年中以年均 30%的增幅領跑亞洲,2014 年度票房達 47 億美元,為世界年度電影票 房增長貢獻近八成。在這亞洲電影業的全盛時代,新絲綢之路的構想將為亞洲電影業帶來不少機遇,同 時也不乏挑戰。其互聯互通的核心價值將加強沿路地區的聯繫,繼而促進各地電影製作的交流及合作。 亞洲電影業趨向多元化合作 中國日報亞太分社社長兼總編輯周立先生在歡迎致辭中表示新絲綢之路為沿路各地甚至全世界所建構的互惠互利新格局將使不同的行業受益,正迅速發展的亞洲電影業也必因此而更趨向成熟及多元化合作。香港貿易發展局副總裁葉澤恩先生在致辭中也表示中國和東盟發展是新熱點,在亞洲電影電視業蓬勃發 展的今天,將新絲綢之路的發展與國際影視業的發展相結合具有非凡意義。 本次論壇的主題演講嘉賓有香港國際電影節協會主席、亞洲電影大獎學院主席及香港電影發展局副主 席王英偉博士;釜山國際電影節主席李庸觀先生;東京國際電影節主席椎名保先生和中國廣播電影電視 節目交易中心總裁馬潤生博士;專題研討會嘉賓有泰國國家電影協會聯盟學術事務副秘書長 Pantham Thongsang 先生;愛奇藝副總裁、愛奇藝影業總裁李岩松先生;大盛國際傳媒(北京)有限公司總裁安曉 芬女士;合一影業 CEO、優酷土豆集團高級副總裁朱輝龍先生;Dragongate 娛樂公司首席執行官 William Pfeiffer 先生;《荷里活報導》亞洲分社社長 Clifford Coonan 先生以及《中國日報》專欄作家、電影評論 家周黎明先生。 電影界翹楚聚頭一同探討在新絲綢之路的所帶來的機遇與挑戰下,業界如何達成內容、 人才、 銷售、製作、資金和市場等方面的合作。 全球影視業年輕一代蓬勃興起 主題演講嘉賓們分別就香港、韓國、日本以及中國大陸目前的電影電視行業的發展做出深入分析,並就對影視業的亞洲地區乃至全球國際合作表示積極展望。王英偉博士談到目前年輕一代的蓬勃興起帶 動了全球電影電視行業的發展,他希望在未來 10 年,電影製造業將進入互相合作、共同發展的全盛時代。 椎名保先生指出電影行業的發展可以為各國的文化交流提供一個更加多元的平臺,希望通過此次交流能 夠促進亞洲電影業作為交流媒介增進亞洲國家之間的互相瞭解。馬潤生博士闡述了當下在新媒體的蓬勃 發展下,電影電視行業面臨很多挑戰,但是電影行業仍將是全媒體時代中不可缺少的重要元素。亞洲國 家之間可以照仿中國的絲綢之路,做到共同投資、相互引進、相互譯製的無障礙合作,促進全球電影業 的發展。 本次專題研討會上,嘉賓們還就亞洲電影的發展前景進行深入探討與交流。著名電影評論家周黎明 先生指出,亞洲電影市場的合作前景與潛力非常大,只要亞洲各國能夠攜手共同尋找發展機遇,亞洲電影市場一定能夠飛速發展。目前,電影行業是一個大市場,具有豐富的大資源和大產業,希望亞洲各國 能夠發揮各自的優勢,互相交流與合作,共同促進整個亞洲地區電影電視行業的蓬勃發展。
2015-03-26The China-ASEAN Investment Cooperation Fund, a private equity fund set up by the Chinese government, is looking to increase its investments in the Association of Southeast Asian Nations, especially in influential projects that offer good returns, a top official with the fund said on Tuesday. "An influential project is one that is sustainable and creates more tax revenues and jobs. It should also have a positive impact on the local community and be well received by the local residents," said Li Yao, chief executive of the fund, at the Asian Financial Forum in HongKong. "We have difficulty in finding good projects as the estimated investment returns rarely meet our expectations. In addition, the potential risks and transaction costs are high due to the lack of clarity in local government regulations and inefficiencies in the project approval procedures," Li said. The chief executive said that the entire transaction is often a lengthy and drawn-out process. "We want the governments to increase their efficiency and become more transparent," he said. Established in 2010, the fund is sponsored by the Export-Import Bank of China along with other financial institutions and companies. With a targeted size of $10 billion, it has used the first tranche of $1 billion for investments in 10 projects within the ASEAN region, barring Vietnam and Brunei and realized returns of about $4 billion to $5 billion. The second phase of investment is expected to be in place within the next two years, but the amount is yet to be decided, he said. The fund is part of the Chinese strategy to deepen cooperation between China and ASEAN countries. Premier Li Keqiang said in a keynote speech at the 10th China-ASEAN Expo and the China-ASEAN Business and Investment Summit in 2013: "China will initiate a new round of targeted loans, give full play to the China-ASEAN Investment Cooperation Fund, and work actively with various sides to establish a financing platform in Asia to fund large-scale infrastructure projects." The fund has primarily invested in infrastructure, energy and natural resources and will continue to invest in the three major areas. Based on these investments, it has developed cooperation with local companies in other sectors including agriculture, education and healthcare. So far, the projects invested by the fund have brought double-digit returns, the chief executive of the fund said. Among the ASEAN countries, the fund plans to focus more on the Indo-China Peninsula and Indonesia. Countries in the Indo-China Peninsula such as Cambodia, Laos and Myanmar need investments for continued development and they are friendly toward China. Indonesia also has lots of investment opportunities due to its large population of more than 253 million, he said. China is drawing up a plan for massive investments to promote the New Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, which will deepen its relations and cooperation with ASEAN countries. "Exporting high-quality production capacity and technologies from China to the ASEAN members will benefit both sides as these countries are similar to China in terms of their economic structure and stage of development," Li said. He called the fund a forerunner of the "One Belt, One Road" strategy and emphasized that building trust between China and ASEAN is important for Chinese investment. jiangxueqing@chinadaily.com.cn http://europe.chinadaily.com.cn/business/2015-01/23/content_19386630.htm
2015-01-27In a world awash with money, there is still one place crying out for investment: Asian infrastructure. The Asian Development Bank pegs demand for infrastructure investment at $730 billion a year for the next decade, while a 2014 World Bank report shows that South Asia needs to invest up to $2.5 trillion to bridge its infrastructure gap over the next 10 years. And India needs $1 trillion of investment over the next five years, McKinsey says. Asia’s new infrastructure push coincides with China’s foreign policy goal of connectivity — which means infrastructure that physically links China to other Asian markets as well as related financial arrangements. Suffering from chronic over-investment and overcapacity after a five-year credit boom, the Chinese economy is pulling back from the frenetic doubt-digit growth rates of the past. With $4 trillion of government-administered foreign exchange reserves and Beijing’s active policy of supporting offshore acquisitions, Silk Road strategies — spearheaded by China to symbolize its growing influence in development funding and potential new sources of financing — are believed by some analysts to be good channels to tap China’s excess savings. But Vivek Pathak, regional director of Asia and the Pacific at the International Finance Corporation, noted these strategic initiatives should be viewed from two more perspectives. On the one hand, these landmark moves in response to the huge appetite for infrastructure in Asia can help China play a bigger role in regional economic life by exploring its infrastructure expertise and financial capacity. More importantly, Silk Road strategies can also help China build up global brands of its own, which the world’s factory wants to do more as it establishes a growing number of multinationals across the globe. Apart from undeveloped infrastructure and the massive infrastructure gap in Asia, the lack of funding, stable legal and social environments, and the inability of financial institutions to make cross-border commitments are also among barriers for the regional connectivity, noted Pathak. As the private sector arm of the World Bank Group and an investor in the China-ASEAN Investment Cooperation Fund, IFC is well positioned to have its eyes trained on macro trends emerging in the region and to find out what opportunities arise there. To facilitate investment and financing for infrastructure and resources and break the connectivity bottleneck in the region, Pathak sees great potential for internet financing, which poses a challenge to traditional banking. “As traditional brick-and-mortar banking is becoming increasingly expensive and time-consuming, these innovative internet banking and telephone banking options could make a difference to the region’s economic life,” said Pathak. China’s big experiment in Internet banking has finally begun, with mainland Internet giant Tencent’s WeBank kicking off trial operations this month. “The next big thing is technology, which brings productivity and efficiency to the banking system and helps us reach more credit-strapped people,” noted Pathak. sophia@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218075.html
2015-01-23China and the ASEAN countries will benefit from increased economic cooperation and integration with the creation of the 21st Century Maritime Silk Road, one of China’s most significant and latest national strategies, a China Daily Roundtable conference on the regional economic development outlook heard on Tuesday. “Asia today is on the threshold of a momentous era in economic development and advancement, with China having taken the lead in pushing a string of initiatives that are aimed not only at linking up the whole of Asia, but also at giving the continent the impetus it desperately needs to spur growth after a period of global economic stagnation and uncertainties,” Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, said in his welcome address at the panel session entitled “China, ASEAN and the New Silk Road — Global Financial Perspectives” as part of the Asian Financial Forum (AFF) in Hong Kong. “The New Silk Road illustrates the development of Asia. It connects the world’s second-largest economy with 600 million people of the ASEAN Economic Community. This new dynamic project has the ability to create a tremendous amount of change in finance and business, where Hong Kong is well positioned to tap the opportunities,” stressed Raymond Yip, deputy executive director of the Hong Kong Trade Development Council, the organizer of AFF — one of the most important annual events on the global financial calendar. Xu Ningning, executive president of the China-ASEAN Business Council, affirmed that Hong Kong will have an edge in the development of the New Silk Road, including its strategic geographical location and natural connection with both ASEAN countries and the Chinese mainland, not to mention its strength in financial services and its vibrant business society. Economic Community China and ASEAN states reached a consensus to support the “New Silk Road” at the 17th ASEAN-China Summit in November. Trade value between China and ASEAN increased 8.3 percent on year in 2014, more than two times faster than that for Chinese outbound trade on average. With bilateral trade value pointing at $500 billion in 2015, growth rate is due to exceed 10 percent this year, Xu said. “With the ASEAN Economic Community to be established at the year-end, the New Silk Road will help enhance regional economic cooperation and make ASEAN the first stop for Chinese outbound investment,” Xu said. “With GDP surpassing $2.4 trillion and its rising middle class, the 21st century belongs to ASEAN. However, to benefit from regional integration, we need to have strong economic fundamental and structural reforms, and closer ties with neighboring countries,” Perry Warjiyo, deputy governor of Bank Indonesia, told the audience. Warjiyo emphasized that the gap between ASEAN member states is wide and demand for infrastructure investment is huge. “During the next five years, Indonesia plans to build 15 new airports, 24 ports and over 3,000 kilometers of highways. An estimated $450 billion will be required for these projects and other expansion plans. We are looking for cooperation with other countries, including China and the US,” he said. While ASEAN already represents the world’s seventh-largest economy in terms of GDP, it is on track to become the fourth-largest by 2050. Value of ASEAN-China trade will reach $1 trillion by 2020, said Tan Sri Dr Michael Yeoh, chief executive officer of Asian Strategy and Leadership Institute, Kuala Lumpur. Malaysia has the chairmanship of ASEAN this year. “Given its resource richness and the size of the market, businesses in the region are expected to thrive, which will engage big corporates as well as SMEs in both ASEAN and China,” Yeoh said. “Newly established offshore renminbi clearing banks in Malaysia, Thailand and Singapore will prompt trade and economic contingence with China, which will make China stronger and a true partner of ASEAN.” Identical views were expressed by China-ASEAN Investment Cooperation Fund CEO Li Yao, who said that in linking the Chinese and ASEAN markets, the New Silk Road will promote the circulation of capital flow, technology and goods in the region, facilitating sustainable growth in the long term and, above all, improve mutual trust. “The New Silk Road deserves global attention,” Li emphasized. Huang Yiping, deputy dean of the National School of Development at Peking University, said: “China can contribute to the international economic order by doing what it does best — no matter whether it is construction or providing funding.” Huang said since China is upgrading its industries and rebalancing economic structure amid a slower growth rate, it will become a major direct investor overseas. “China, now the third-largest capital exporter in the world after only the US and Japan, is soon to become the second, given the liberalization of its capital account and overseas relocation of lower-end manufacturers. The New Silk Road will also bring more investment aboard,” he added. Logical market Vivek Pathak, regional director of Asia and the Pacific at the International Finance Corporation, told the session that due to the demands of asset diversification and expansion of Chinese brands, capital outflow from China will be the key phenomenon for the next decade. “ASEAN is the most logical market for China. It is not only important as a market for selling, but also as a manufacturing base for Chinese brands,” he said. Meanwhile, unlike the traditional model where the financial sector follows manufacturers, more Chinese tech giants such as Tencent and Alibaba are set to become involved in financial services and integrated with financial firms in the region and may even get ahead of the traditional banking sector. “While the New Silk Road prompts physical connectivity, in 10 years or less, we are also going to have a virtual cycle connecting ASEAN, China, India and other parts of Asia that provides financial support,” Pathak said. Separately, China’s outbound investment activities along the New Silk Road would provide huge opportunities for service industries based in the Qianhai-Hong Kong zone, said Edward Chen Kwan-yiu, president of the Qianhai Institute for Innovative Research. “Outreach investment is becoming increasingly popular among Chinese enterprises. Other than overseas IPOs, there are going to be more overseas joint ventures and cross-border M&A deals, which will need intermediaries,” Chen forecast. “Given Qianhai’s liberal policies and Hong Kong’s expertise, the Qianhai-Hong Kong zone will demonstrate the new model of China’s growth. Emmadai@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218069.html
2015-01-23Hong Kong will continue to play an important role in mainland economic growth as long as it deepens cooperation with Shenzhen’s Qianhai and capitalizes on its own advantages, Edward Chen Kwan-yiu, president of the Qianhai Institute for Innovative Research, told China Daily. The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone should have a place in the country’s new economic development strategy, especially in terms of developing the mainland’s modern service industry, internationalizing the yuan, liberalizing the capital account and also as a window for mainland enterprises to invest in other countries, Chen said. Chen, who is also Distinguished Institute Fellow and Honorary Professor at The University of Hong Kong, added: “Hong Kong investors should understand and realize the vast opportunities in Qianhai.” He explained that they should understand the importance of Qianhai not as just a small plot of land, they need to understand the mission of Qianhai as laid out by the central government. “If they understand that, I believe more Hong Kong enterprises will go to Qianhai, as well as professionals … Many young people are saying that they don’t have enough opportunities in Hong Kong, why not go to Shenzhen and Qianhai?” This zone aims to benefit both Qianhai and Hong Kong, as it is set against the backdrop of fresh economic growth on the mainland, and the focus of the zone is modern service industries, which include financial, logistics and IT services, as well as the professional and technical services sector, Chen explained, emphasizing that Hong Kong has ample expertise in all four areas. Chen also pointed out that Qianhai needs to be aware of the fact that it cannot attract Hong Kong investors and professionals unless it can convince them that they can do something different in Qianhai compared to the SAR. Many investors and enterprises from Hong Kong are not satisfied with only doing business in Qianhai, they want to use it as stepping stone to reach other parts of the mainland, he said. A lot of work needs to be done, so that Hong Kong and Qianhai can work together to become one effective and cooperative economic zone, said Chen. Meanwhile, Hong Kong must continue to capitalize on its advantages, including its work efficiency, rule of law, supervision and regulation, as well as culture and system, in order to continue to play a key role in the country’s future development, he said. In terms of Hong Kong’s role in the “New Silk Road” trade network, Chen pointed out that the first stage of the road would be infrastructure building, especially sea ports, and mainland enterprises will need a lot of financing for these projects. Qianhai and Hong Kong would be good places for a financing platform, and Hong Kong would also be an intermediary for implementing these investments. Following infrastructure building, there will be a lot of investment opportunities for mainland enterprises abroad, and some policy change may be needed, including on capital control, Chen noted. By then Hong Kong professionals would be very well placed to help capital travel overseas, and help mainland enterprises carry out cross-border merger and acquisitions, he added.
2015-01-23As Asia moves forward into 2015, the region is standing on the threshold of historic opportunities. China is taking the lead in a number of initiatives. The newly proposed Asian Infrastructure Investment Bank will start with $50 billion capital to finance projects across the region. In addition, a Silk Road fund with $40 billion will be set up to boost regional connectivity. In September 2013, the concepts of the New Silk Road and the 21st Century Maritime Silk Road were revived by Chinese President Xi Jinping during an official visit to Southeast Asia. For centuries, the Silk Road, both overland and by sea, facilitated the trading of Chinese silk, spices and tea. The Chinese vision is to create an integrated economic belt to benefit economies along the ancient route — from ports in South China to South and Southeast Asia, the Middle East and Europe. “These plans are exciting, unprecedented and real, offering tremendous opportunities for potential investment,” said Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, speaking on Jan 20 during a session titled China, ASEAN and the New Silk Road — Global Financial Perspectives. The China Daily-sponsored roundtable event was held as part of the two-day Asian Financial Forum, which kicked off in Hong Kong on Jan 19. There is a great deal of excitement building around opportunities awaiting China and ASEAN. The New Silk Road will connect China, the world’s second-largest economy, with the 600-million-strong Association of Southeast Asian Nations (ASEAN). Today, ASEAN is a fast-growing market with a combined GDP of $2.4 trillion, and is the world’s seventh largest economy. “This new dynamic has the ability to create tremendous forces of change in finance and business,” said Raymond Yip, deputy executive director of the Hong Kong Trade Development Council. “It will impact regional and global economic gravity, setting new ground rules for development and sustainable growth,” Yip told the audience. One view is that the New Silk Road initiative will be conducive to the launch of the ASEAN Economic Community (AEC). By December, ASEAN will see a single market and manufacturing base with free flow of goods, services and labor. Thanks to its geographical proximity, the 10-member ASEAN bloc will be the first stop on China’s ambitious road map. “The realization of the AEC will require regional effort as well as support from neighbors such as China,” said Xu Ningning, executive president of the China-ASEAN Business Council. Although the New Silk Road is a Chinese-proposed concept, it is a “concerted effort” to promote mutual development and shared prosperity in the region, Xu emphasized. While Southeast Asia is a vast region with huge income disparities, the Chinese initiative could be a timely solution to close the development gap in ASEAN. “China has a policy of befriending its neighbors. We will help our ASEAN neighbors to improve their infrastructure,” Xu added. According to the Asian Development Bank, the region will need to invest $750 billion annually in infrastructure during the period 2010-2020. Currently, dozens in infrastructure projects are being financed by a string of Chinese funds. In Indonesia alone, total investments in infrastructure will reach $450 billion in the next five years. State budget will only finance about half of that sum and one-third will come from private funds, especially from abroad, according to Perry Warjiyo, deputy governor of Bank Indonesia, the country’s central bank. Apart from hardware infrastructure development, China-ASEAN collaboration also lies in areas such as finance. The establishment of Chinese yuan clearing banks, such as the Industrial and Commercial Bank of China in Singapore and the Bank of China in Malaysia and Thailand, will also benefit from bilateral trade and economic exchanges, said Michael Yeoh, CEO of the Asian Strategy and Leadership Institute, a Malaysia-based think tank. Yeo said: “China can focus on the three ‘C’s that will deepen bilateral relations: Connectivity, community and centrality. These will make China a true partner for ASEAN.” On the other hand, rapidly growing Chinese homegrown technology brands have made inroads into the country’s financial services sector in recent years. Vivek Pathak, Asia-Pacific director at the International Finance Corporation, envisages the development of a “virtual Silk Road”. “It could be in the form of online financial institutions that could connect ASEAN with China and other economies such as India,” Pathak suggested. From the launch of virtual credit cards to WeBank — China’s first online-only bank launched this month by Internet giant Tencent — new technology is expected to provide new financing channels for small and mid-sized borrowers. In September, Chinese e-commerce leader Alibaba achieved the world’s largest global initial public offering (IPO) at $25 billion. For some, however, what matters most is not the size of Chinese IPOs, however impressive, but the tremendous impact of Chinese enterprises venturing abroad. “The growing ties between China and the region will only encourage more greenfield investments and cross-border mergers and acquisitions by China,” said Edward Chen, a distinguished fellow at the University of Hong Kong, who is also president of the Qianhai Institute for Innovative Research. Established in 2011, the Qianhai special economic zone is situated in the economic hub of Shenzhen, in South China’s Guangdong province. Chen said that Qianhai would serve as an avenue to channel funds from the region for this new wave of investment. His rationale: 2015 is when ASEAN integration reaches new heights with the coming of the AEC. “China certainly would like to further cooperate with the ASEAN to form an economic zone much bigger than before,” Chen said. Panelists also recognized that China’s Silk Road initiative has been met with enthusiasm from some but skepticism from others. One view is that the Chinese proposal should be more than a funding initiative. Asia is not short of development funds pouring in, but sustainability often remains an issue. “How can we have sustainable, long-term growth in terms of financial, environmental and social impacts?” asked Li Yao, CEO of the China-ASEAN Investment Cooperation Fund, a quasi-sovereign fund established by China to support building of infrastructure and energy in ASEAN. He said the key is to build a strong business model and ensure efficiency from the beginning. What is also essential, he added, is to find an adequate link between China’s Silk Road initiative and the global market. “The New Silk Road facilitates the flow of capital, goods and skills. It can be part of the South-South cooperation strategy (as promoted by the United Nations) for developing countries to help one another,” said Li. Huang Yiping, an economics professor at the National School of Development at Peking University, added: “My reading of the New Silk Road is that it is a continuous effort of China’s peaceful rise to supplement — not substitute — the existing economy.” While China has benefited from participation in financial institutions, reforms at bodies such as the International Monetary Fund have been less satisfactory for developing nations. “The New Silk Road and other funding initiatives are ways for China to use its experience to supplement existing institutions,” Huang said. “And the Chinese experience is: In order to get rich, get the roads first.” Lastly, panelists agreed that going by the “Asian way” of consensus, cooperation and understanding would help take forward the Chinese vision of regional integration. “Make sure that no one dominates the scene and the benefits are equally distributed among shareholders,” said Chen from Hong Kong University. jennifer@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218083.html
2015-01-23Mainland outbound direct investment (ODI) is for the first time set to exceed inbound figures, underscoring a trend where the world’s second-biggest economy is poised to become a net outbound investment destination. China’s ODI for 2014 surged 14.1 percent to a new high of $102.9 billion, while foreign direct investment (FDI) rose an annual 1.7 percent to a record $119.56 billion, according to the Ministry of Commerce. Huang Yiping, deputy dean of the National School of Development at Peking University, believes Hong Kong will be given full play amid this scenario, as the nation’s corporate sector, spurred by a cooling economy, is looking offshore to expand its footprint and boost profits. For decades, the mainland has lured multinational manufacturers with cheap labor, business-friendly policies and low-cost raw materials. However, the era of cheap China may be drawing to a close. Official data show that Chinese real income adjusted for inflation increased 8 percent last year, with rural income growing 11.2 percent, even faster than its urban counterpart. Costs are soaring, beginning with the coastal provinces where factories have historically been clustered and where employers are losing their power to draw workers from the hinterland, Huang told China Daily. “As a result, Chinese businesses have set about plowing money overseas to lower costs but find they haven’t got the slightest idea where and how to invest,” Huang said. As a world-class financial service provider, Hong Kong therefore can gear up to help Chinese firms with outbound investment, observed Huang. With China initiating the setting up of the 21st Century Maritime Silk Road, Silk Road Fund and Asia Infrastructure Investment Bank in a move to boost regional investment and economies, Hong Kong will continue to make a big difference despite worries that the SAR may be eclipsed by the rise of Shanghai and other first-tier mainland cities, Huang explained. Uncertainties over these strategic initiatives have sparked doubts and vehement opposition from many developed countries. But the skepticism concerning China’s transparency and governance is quite understandable, Huang said. “The point is how we can shape these landmark initiatives into an open platform for system design and membership. And more importantly, instead of putting forward too many colorful initiatives, working on one or two projects and showcasing our ability will be much more constructive,” Huang pointed out. A further concern is such generous investment may trigger public anger at home as mainland education and medical sectors also need financial support, and under the current political system Chinese taxpayers still cannot check whether the government spends the money in a useful way. Huang pointed out that such concerns highlight the significance of a shift from government-dominated ODI to private enterprises-dominated ODI in the near future. As the government and State-owned enterprises (SOEs) have so far taken the lead in taking money overseas, some investment projects — perhaps inked for the purpose of closer political ties and regional cooperation — are sometimes not very returns-oriented, noted Huang. However, given the strong appetite for capital from many domestic sectors, such a lavish yet inefficient investment mechanism cannot be a long-term policy. “With private enterprises playing a bigger role in a much larger flow of investment abroad, these profit-making bodies can be expected to invest in a more cost-effective way,” said Huang. sophia@chinadailyhk.com
2015-01-23Chinese enterprises will find great investment opportunities in ASEAN countries, especially in the infrastructure, agriculture and trading industries, Xu Ningning, executive president of the China-ASEAN Business Council, told China Daily. Members of the Association of Southeast Asian Nations (ASEAN) have launched numerous infrastructure projects during the last few years, and many Chinese enterprises have been entrusted with these projects due to the advantages they bring of relatively low raw material price as well as design and labor costs, said Xu. In Singapore, Myanmar, Cambodia and Malaysia, Chinese companies have taken a significant market share of the local infrastructure industry, and many new projects are expected to be launched in the future, offering fresh opportunities for Chinese firms, he added. Xu pointed out that State-owned enterprises are generally engaged in large projects like dam-building while private companies prefer smaller projects like mining. Meanwhile, as economic growth in China has also boosted demand for commodities and resources from ASEAN countries — including lignum, mineral resources and consumer goods like fruits and seafood — Chinese enterprises will find good opportunities in the planting and processing industries as well, said Xu. “From what I know, many Chinese companies, mostly private firms engaged in rubber planting, cassava planting, as well as palm oil processing industries in ASEAN countries are doing very well.” Xu also noted that there are many opportunities for cooperation in the manufacturing industry in the ASEAN region. Industrial upgrading is now an important part of economic growth of ASEAN countries, he said, adding that at the same time, many Chinese manufacturers, especially textile and garment makers, are trying to “go out”. ASEAN countries will become an ideal place for Chinese manufactures, thanks to the ASEAN - China Free Trade Area; besides, as many developed countries have launched antidumping and countervailing duty measures and set market barriers against Chinese industrial products, exploring ASEAN markets would enable Chinese companies to expand overseas sales. There are also good opportunities of selling building materials in ASEAN countries, said Xu. Due to the number of infrastructure projects launched, demand for building materials, including lighting equipment, wall materials, ceramic tiles, furniture, and even home appliances, is quite strong, he explained. The “made in China” building materials offer good quality at relatively low prices, which gives Chinese companies a competitive edge, he emphasized. As for the challenges facing Chinese companies keen to invest in ASEAN countries, Xu said the China-ASEAN Business Council suggests that Chinese companies should devise long-term plans about the country they want to invest in, rather than just focus on seeking short-term benefits. Chinese companies should also pay close attention to both product and project quality when they do businesses in ASEAN countries. They should also attach importance to building good relationships with the local government, local people, as well as local press, he advised. Xu also suggested that Chinese companies hire locals into their management team, which could help them understand the local culture and better resolve local issues. sophiehe@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218076.html
2015-01-23“The (ASEAN Economic Community) is just one mission accomplished. People wonder what’s next after 2015,” said Michael Yeoh, CEO of the Malaysia-based Asian Strategy and Leadership Institute. He made his comments at a China Daily roundtable that took place in Hong Kong on Jan 20 with the theme China, ASEAN and the New Silk Road — Global Financial Perspectives. Experts speaking at the roundtable agreed that the Association of Southeast Asian Nations (ASEAN) needs new plans for the post-2015 period after the realization of the AEC, a single regional market, by the end of this year. Developing the post-2015 vision is very important, Yeoh said. Malaysia as the regional bloc’s chair for 2015 has identified the creation of a “people-centered ASEAN” as the central element of this chairmanship. There are two things Malaysia hopes to accomplish as chair of ASEAN, he said. “One is trying to engage the people of ASEAN more — focusing on a people-centered ASEAN — in developing a post-2015 vision,” Yeoh said. The other is to help fast-track the AEC process despite the fact that the 10 member countries are at different stages of development. According to the AEC scorecard, a monitoring mechanism to track the progress of the regional community, 84 percent of the AEC target has been achieved. While this is commendable, it also means that there is still a lot of work left to be done. “I think the prospects for ASEAN are getting better with the realization of AEC, (which is expected) by December of this year,” Yeoh said. “Now, ASEAN is already the seventh biggest economy in the world, and it’s been projected that by 2050, ASEAN can become the world’s fourth biggest economy.” In December, the leaders of the bloc signed the Nay Pyi Taw Declaration on the ASEAN Community’s Post-2015 Vision, which determines to “shape a bold and forward-looking future for ASEAN which will enhance and strengthen the ASEAN Community and enable the realization of a politically cohesive, economically integrated, socially responsible, and a truly people-oriented, people-centered and rules-based ASEAN”. Although little has been revealed about the details of the plan, Le Luong Minh, secretary-general of ASEAN, said earlier that the bloc’s future goals after 2015 include doubling the region’s combined GDP while halving the number of ASEAN people living in poverty by 2030. AEC is a process, rather than an event, Le said. The ASEAN Integration Monitoring Report, jointly produced by the ASEAN Secretariat and the World Bank, suggests that beyond 2015, ASEAN should continue to be a “facilitator of better integration of its members’ economies into the global trading system and pursue an open regionalism agenda”. The report also notes the significance of looking into “streamlining rather than eliminating” non-tariff measures to make them more targeted, simple and effective, while minimizing any trade-restricting impact. “2015 is the year of final exam for ASEAN. The accomplishment of AEC is not only important to ASEAN, but also important to the regional economy and the global economy,” Xu Ningning, executive president of the China-ASEAN Business Council, told delegates at the roundtable. “Reaching the AEC target is not easy. It depends on the 10 countries working together and also needs support from countries from the outside.” Xu said that China’s Maritime Silk Road initiative — which links China to ASEAN, South Asia, the Middle East, North Africa and Europe — will benefit ASEAN in terms of building the AEC and its future economic development after the realization of the regional economic community. China’s trade with ASEAN grew 8.3 percent last year, significantly higher than China’s overall trade growth of 3.4 percent over the same period, Xu said. He pointed out that China’s contribution to the AEC was mainly focused on building physical connectivity and improving related infrastructure such as ports, railways and roads. State-owned companies such as China Harbor Engineering have invested in big connectivity projects in ASEAN. There are also special funds to finance those projects such as the 3 billion yuan ($483 million) China-ASEAN Maritime Cooperation Fund and the $40 billion New Silk Road Fund. Perry Warjiyo, deputy governor of Bank Indonesia, said that Indonesia is investing in major infrastructure projects in the next five years, which include building 15 new airports and expanding 40 existing airports and 15 seaports. Warjiyo said ASEAN’s largest economy will develop its eastern part to link with the Maritime Silk Road, and will build over 3,000 kilometers of roads and railways. Indonesia’s infrastructure projects will be financed by the government and the private sector. Warjiyo said Indonesia hopes to invite more investors from countries including China, Japan, South Korea and the US. Investors who want to invest in ASEAN should consider Hong Kong as a gateway, said Raymond Yip, deputy executive director of the Hong Kong Trade Development Council (HKTDC), adding that Hong Kong is well positioned to play an important role in the new economic dynamic of Asia. “The ASEAN economy as an economic bloc already represents our second largest trading partner, with total bilateral trade reaching $96.3 billion last year,” he said. “Meanwhile, some 500 ASEAN companies already have presences in Hong Kong.” HKTDC data show about 10 percent of trade between the Chinese mainland and ASEAN went through Hong Kong last year. Yip said that Hong Kong will continue to reach the mainland and ASEAN markets, engineering new development and cooperation opportunities in industries such as retail, logistics and infrastructure financing. Hong Kong needs to stay relevant and must not be marginalized in the overall picture, said Li Yao, CEO of the China-ASEAN Investment Cooperation Fund. The Hong Kong-based fund has already raised $1 billion, which has been invested in ASEAN projects such as Cambodia’s national fiber optic cable network, Thailand’s largest port, Asia’s largest potash mine in Laos and Indonesia’s largest ferronickel smelter. These undertakings act as an example of the diversity of infrastructure and other projects in the region even as the establishment of the AEC draws near. benyue@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218088.html
2015-01-23Film Insiders Explore Ways to Tap Market in New Silk Road Era Tue March 31, 2015 China's "New Silk Road" initiative has been widely heralded for its potential to reshape Asia's economic landscape. Ma Runsheng, a renowned director and producer from Beijing, believes it will also have a profound impact on the region's movie and entertainment industry. "A Bite of China has been translated into 9 languages and aired in more than 70 countries and regions. Each single episode of the documentary has been well received. So I was considering whether we could produce A Bite of Asia, or A Bite Along the Silk Road, to introduce Asian food in new areas. That would be delicious. " Aired in 2012, A Bite of China is a series of food documentaries telling the histories and stories behind Chinese cuisine. It was a big hit and has drawn millions of viewers online. Ma Runsheng also has a suggestion for what filmmakers can do to promote their works globally. "You can introduce your productions to us and we can translate them and distribute them to other countries, so they can be appreciated by global audience without language barriers. I also hope good Chinese movies, TV dramas, animations and documentaries can be played in overseas TV channels." Yasushi Shiina, Director General of Tokyo International Film Festival, says movies have no boundaries. "Movies provide a diverse platform for Asian countries to exchange ideas and understand each other better." Director of Busan International Film Festival Lee Yong-Kwan says they have learned a lot from the region's film festivals. "We have set up trans-national movie foundations to invite students to go abroad to study and travel, so they can learn others' cultures and in return, put their knowledge into practice." India's "Bollywood," Japan's "J-pop" and South Korea's "K-pop" have already established their names globally, while the ASEAN countries, strategically located on the first leg of the "New Silk Road", have committed to opening their film markets this year. Asia's movie industry is booming as the world's largest and fastest growing film market. Last year, combined box office receipts in this region accounted for 80 percent of all global growth in the sector. For CRI, this is Li Jing in Hong Kong. http://english.cri.cn/12394/2015/03/26/2361s871694.htm
2015-04-13The "New Silk Road" for film industry should not just be targeting the Chinese market, but for all Asian countries to develop in tandem, panelists said at a forum at the Hong Kong Filmart. The purpose of the forum is to find out how Asian film can collaborate and compete with each other to create a bigger Asian film industry. Based upon by the "New Silk Road" concept proposed by Chinese president Xi Jinping in 2013, that encompasses economic ties and infrastructure construction between China, its Asian neighbors, the Middle East and Europe, the forum focuses on the difficulties facing pan-Asia and East-west co-productions. "We need to set up a fund across Asia that will start new projects. This fund can be set up and a lot of government agencies and business institute can join as well. We can accelerate the development of the Asian film industry. This is also what Xi Jinping mentioned as the new Silk Road. The new Silk Road should not just be targeting China, but all Asian countries to develop in tandem," said Lee Yong Kwan, Busan International Film Festival director. For each of the Asian countries' film industries, films have to gain traction first in their countries of origin then expand. "Films' first market is the local market. In the future, we have to penetrate the Asian market first then the North American market," said Zhu Huilong, CEO of Heyi Pictures and senior vice president of Youku Tudou Inc of China. "The first sign of success is to gain a foothold in your own market, then it's for the neighbors because there are more commonalities," said Raymond Zhou, columnist and film critic of China Daily. Much has to be overcome to create co-productions in Asia. "It is much easier to invest in new infrastructure, but for creative industries, you have to overcome a diverse group of languages, cultures, people with different taste and ages. It's not as easy to create a Silk Road just by investing," said Wilfred Wong, chairman of the Hong Kong International Film Festival Society and the Asian Film Awards Academy. The way ahead for co-productions is not only targeting China, but other emerging markets as well. For example, Thai films are gaining popularity in the countries' neighboring regions, namely Cambodia and Vietnam, said Thailand's Pantham Thongsang, Deputy secretary for Academic Affairs, The National Federation of Motion Pictures and Contents Association. So the country's Transformation Film is working with South Korea's CJ Entertainment to produce films that will travel to Southeast Asia. While the concept of co-productions is not new, movies created as collaborations between different regions run the risk of being everything to everyone but nothing to all, said William Pfeiffer, CEO of Hong Kong-based Dragongate Entertainment. "Movies try to hit all targets end up hitting none of it," said Pfeiffer. Some are skeptical of the co-production phenomenon due to the lack of success stories for co-productions in recent years. "The most successful Japanese co-production was Merry Christmas Mr. Lawrence in 1983, and that was thirty years ago, said Yasushi Shiina, Tokyo International Film Festival director general. But Shiina also admitted co-productions are the way forward, as the Japanese population is aging, its film market is facing a 30% decrease in market revenue. "Films that are 100% made in Japan is coming to an end," said Shiina. The Holy Grail is to find a movie that works in different regions, said Clifford Coonan, Asia Bureau Chief of The Hollywood Reporter. Coonan named the upcoming Zhang Yimou–directed film Great Wall that will star Matt Damon, Willem Defoe, and Andy Lau as a test case for the future. "The film has an international cast, so that's possibly the way forward, that would work both in China and overseas. It will be a test case of how things can work in the future." http://www.hollywoodreporter.com/news/hong-kong-filmart-new-silk-784218
2015-04-09Asian Film Captains Tap Potential Market Growth in the New Silk Road Era MAR 25, 2015, Hong Kong – More than 300 delegates from the movie industry around the world attended the China Daily Asia Leadership Roundtable Panel on “The New Silk Road of Asia’s Film Industry: Challenges, Opportunities and Partnership” at 10.00AM to 12.30PM at FILMART. We are delighted to work with Hong Kong Trade Development Council again and to be the Media Partner for FILMART 2015 for the third consecutive year. China’s “New Silk Road” initiative is widely valued for its potential in reshaping Asia’s economic landscape forAsian Film Captains Tap Potential Market Growth in the New Silk Road Era growth and prosperity in the 21st Century. As such, it is expected to have a profound impact on the region’s movie and entertainment industry that has already embarked on a new phase of expansion in a scale unseen before. Asia is already well-‐established as the world’s largest and fastest growing film market. In 2014, combined box office receipts in this region amounted to $4.7 billion, accounting for 80 percent of the global growth. On the Chinese Mainland, investment in the film industry and box-‐office gross has been increasing by leaps and bounds in each of the past several years. Meanwhile, the ASEAN countries, strategically located in the first leg of the “New Silk Road” have committed to opening their film markets by the end of 2015 under the ASEAN Economic Community agreement. Elsewhere in the region, India’s “Bollywood,” Japan’s “J-‐pop” and South Korea’s “K-‐pop” are already making significant inroads into the international marketplace. Mr. ZHOU Li, Publisher & Editor-‐in-‐Chief of China Daily Asia Pacific believed that the rapid development of China’s film industry in alignment with President Xi’s ‘New Silk Road’ initiative will make recognizable contribution to the growth of Asia’s film industry. Mr. Zhou welcomed the distinguished keynote speakers together with Mr. Raymond YIP, Deputy Executive Director of Hong Kong Trade Development Council including Dr. Wilfred WONG Ying-‐Wai, Chairman of Hong Kong International Film Festival Society, Chairman of Asian Film Awards Academy & Vice Chairman of Hong Kong Film Development Council; Mr. LEE Yong-‐Kwan, Festival Director of Busan International Film Festival; Mr. Yasushi SHIINA, Director General of Tokyo International Film Festival and Dr. MA Runsheng, President of China Radio, Film and Television Program Exchange Center. Wong expressed that the current task for the film industry in Hong Kong would be to groom a new generation of professionals and audiences. Ma echoed Wong’s perspective about Asia’s film industry; he hoped that in the future, shows produced in and by China could be seen in most channels around the globe to present the life in China. Lee mentioned Asian movies have always played an important role in the global market; however, communication within the region was hindered by cultural and political barriers. In contrast, Shiina stressed each movie was a medium to arouse interests for cultural communications. That’s why it should have no national boundaries at all. Seven panelists from across Asia including Mr. Pantham THONGSANG, Deputy Secretary for Academic Affairs of The National Federation of Motion Pictures and Contents Associations, Thailand; Mr. LI Yansong, President of iQIYI Motion Pictures and Vice President of iQIYI.com, Inc; Ms. Ann AN, President of Desen International Media; Mr. ZHU Huilong, Chief Executive Officer of Heyi Pictures, Senior Vice President of Youku Tudou Inc; Mr. William PFEIFFER, Chief Executive Officer of Dragongate Entertainment Ltd; Mr. Clifford COONAN, Asia Bureau Chief of The Hollywood Reporter and Mr. Raymond ZHOU, Columnist/Film Critic of China Daily further discussed the challenges and opportunities from their own industry perspectives. Li said the Internet can play a bigger role in the film industry, like launching crowd funding and providing advanced ticket booking. Zhu also stated that in western countries, the success of a film was not reflected only by its box office but also by its sales in an array of merchandises -‐ from mugs to T-‐shirts. This is the area that Chinese producers can pay more attention to as it has a lot of potential. Thongsang believed Thailand can be the gateway for China to other Asian countries, while in return; Thailand films can also enter the Chinese market through its good story ideas.
2015-03-26亞洲三大電影節主席齊聚中國日報論壇 共同探討亞洲電影市場合作與發展新機遇 2015 年 3 月 25 日,香港 –中國日報亞洲領袖圓桌論壇今天第三次攜手香港國際影視展,舉辦題為「亞洲 電影業的絲綢之路:挑戰、機遇與合作」的專題論壇,邀請了香港、釜山、東京電影節主席,以及亞洲 電影業的領軍人物共同探討新絲綢之路時代下亞洲電影市場發展前景並吸引了逾 300 名參會者出席。 中國電影過去十年中以年均 30%的增幅領跑亞洲,2014 年度票房達 47 億美元,為世界年度電影票 房增長貢獻近八成。在這亞洲電影業的全盛時代,新絲綢之路的構想將為亞洲電影業帶來不少機遇,同 時也不乏挑戰。其互聯互通的核心價值將加強沿路地區的聯繫,繼而促進各地電影製作的交流及合作。 亞洲電影業趨向多元化合作 中國日報亞太分社社長兼總編輯周立先生在歡迎致辭中表示新絲綢之路為沿路各地甚至全世界所建構的互惠互利新格局將使不同的行業受益,正迅速發展的亞洲電影業也必因此而更趨向成熟及多元化合作。香港貿易發展局副總裁葉澤恩先生在致辭中也表示中國和東盟發展是新熱點,在亞洲電影電視業蓬勃發 展的今天,將新絲綢之路的發展與國際影視業的發展相結合具有非凡意義。 本次論壇的主題演講嘉賓有香港國際電影節協會主席、亞洲電影大獎學院主席及香港電影發展局副主 席王英偉博士;釜山國際電影節主席李庸觀先生;東京國際電影節主席椎名保先生和中國廣播電影電視 節目交易中心總裁馬潤生博士;專題研討會嘉賓有泰國國家電影協會聯盟學術事務副秘書長 Pantham Thongsang 先生;愛奇藝副總裁、愛奇藝影業總裁李岩松先生;大盛國際傳媒(北京)有限公司總裁安曉 芬女士;合一影業 CEO、優酷土豆集團高級副總裁朱輝龍先生;Dragongate 娛樂公司首席執行官 William Pfeiffer 先生;《荷里活報導》亞洲分社社長 Clifford Coonan 先生以及《中國日報》專欄作家、電影評論 家周黎明先生。 電影界翹楚聚頭一同探討在新絲綢之路的所帶來的機遇與挑戰下,業界如何達成內容、 人才、 銷售、製作、資金和市場等方面的合作。 全球影視業年輕一代蓬勃興起 主題演講嘉賓們分別就香港、韓國、日本以及中國大陸目前的電影電視行業的發展做出深入分析,並就對影視業的亞洲地區乃至全球國際合作表示積極展望。王英偉博士談到目前年輕一代的蓬勃興起帶 動了全球電影電視行業的發展,他希望在未來 10 年,電影製造業將進入互相合作、共同發展的全盛時代。 椎名保先生指出電影行業的發展可以為各國的文化交流提供一個更加多元的平臺,希望通過此次交流能 夠促進亞洲電影業作為交流媒介增進亞洲國家之間的互相瞭解。馬潤生博士闡述了當下在新媒體的蓬勃 發展下,電影電視行業面臨很多挑戰,但是電影行業仍將是全媒體時代中不可缺少的重要元素。亞洲國 家之間可以照仿中國的絲綢之路,做到共同投資、相互引進、相互譯製的無障礙合作,促進全球電影業 的發展。 本次專題研討會上,嘉賓們還就亞洲電影的發展前景進行深入探討與交流。著名電影評論家周黎明 先生指出,亞洲電影市場的合作前景與潛力非常大,只要亞洲各國能夠攜手共同尋找發展機遇,亞洲電影市場一定能夠飛速發展。目前,電影行業是一個大市場,具有豐富的大資源和大產業,希望亞洲各國 能夠發揮各自的優勢,互相交流與合作,共同促進整個亞洲地區電影電視行業的蓬勃發展。
2015-03-26The China-ASEAN Investment Cooperation Fund, a private equity fund set up by the Chinese government, is looking to increase its investments in the Association of Southeast Asian Nations, especially in influential projects that offer good returns, a top official with the fund said on Tuesday. "An influential project is one that is sustainable and creates more tax revenues and jobs. It should also have a positive impact on the local community and be well received by the local residents," said Li Yao, chief executive of the fund, at the Asian Financial Forum in HongKong. "We have difficulty in finding good projects as the estimated investment returns rarely meet our expectations. In addition, the potential risks and transaction costs are high due to the lack of clarity in local government regulations and inefficiencies in the project approval procedures," Li said. The chief executive said that the entire transaction is often a lengthy and drawn-out process. "We want the governments to increase their efficiency and become more transparent," he said. Established in 2010, the fund is sponsored by the Export-Import Bank of China along with other financial institutions and companies. With a targeted size of $10 billion, it has used the first tranche of $1 billion for investments in 10 projects within the ASEAN region, barring Vietnam and Brunei and realized returns of about $4 billion to $5 billion. The second phase of investment is expected to be in place within the next two years, but the amount is yet to be decided, he said. The fund is part of the Chinese strategy to deepen cooperation between China and ASEAN countries. Premier Li Keqiang said in a keynote speech at the 10th China-ASEAN Expo and the China-ASEAN Business and Investment Summit in 2013: "China will initiate a new round of targeted loans, give full play to the China-ASEAN Investment Cooperation Fund, and work actively with various sides to establish a financing platform in Asia to fund large-scale infrastructure projects." The fund has primarily invested in infrastructure, energy and natural resources and will continue to invest in the three major areas. Based on these investments, it has developed cooperation with local companies in other sectors including agriculture, education and healthcare. So far, the projects invested by the fund have brought double-digit returns, the chief executive of the fund said. Among the ASEAN countries, the fund plans to focus more on the Indo-China Peninsula and Indonesia. Countries in the Indo-China Peninsula such as Cambodia, Laos and Myanmar need investments for continued development and they are friendly toward China. Indonesia also has lots of investment opportunities due to its large population of more than 253 million, he said. China is drawing up a plan for massive investments to promote the New Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, which will deepen its relations and cooperation with ASEAN countries. "Exporting high-quality production capacity and technologies from China to the ASEAN members will benefit both sides as these countries are similar to China in terms of their economic structure and stage of development," Li said. He called the fund a forerunner of the "One Belt, One Road" strategy and emphasized that building trust between China and ASEAN is important for Chinese investment. jiangxueqing@chinadaily.com.cn http://europe.chinadaily.com.cn/business/2015-01/23/content_19386630.htm
2015-01-27In a world awash with money, there is still one place crying out for investment: Asian infrastructure. The Asian Development Bank pegs demand for infrastructure investment at $730 billion a year for the next decade, while a 2014 World Bank report shows that South Asia needs to invest up to $2.5 trillion to bridge its infrastructure gap over the next 10 years. And India needs $1 trillion of investment over the next five years, McKinsey says. Asia’s new infrastructure push coincides with China’s foreign policy goal of connectivity — which means infrastructure that physically links China to other Asian markets as well as related financial arrangements. Suffering from chronic over-investment and overcapacity after a five-year credit boom, the Chinese economy is pulling back from the frenetic doubt-digit growth rates of the past. With $4 trillion of government-administered foreign exchange reserves and Beijing’s active policy of supporting offshore acquisitions, Silk Road strategies — spearheaded by China to symbolize its growing influence in development funding and potential new sources of financing — are believed by some analysts to be good channels to tap China’s excess savings. But Vivek Pathak, regional director of Asia and the Pacific at the International Finance Corporation, noted these strategic initiatives should be viewed from two more perspectives. On the one hand, these landmark moves in response to the huge appetite for infrastructure in Asia can help China play a bigger role in regional economic life by exploring its infrastructure expertise and financial capacity. More importantly, Silk Road strategies can also help China build up global brands of its own, which the world’s factory wants to do more as it establishes a growing number of multinationals across the globe. Apart from undeveloped infrastructure and the massive infrastructure gap in Asia, the lack of funding, stable legal and social environments, and the inability of financial institutions to make cross-border commitments are also among barriers for the regional connectivity, noted Pathak. As the private sector arm of the World Bank Group and an investor in the China-ASEAN Investment Cooperation Fund, IFC is well positioned to have its eyes trained on macro trends emerging in the region and to find out what opportunities arise there. To facilitate investment and financing for infrastructure and resources and break the connectivity bottleneck in the region, Pathak sees great potential for internet financing, which poses a challenge to traditional banking. “As traditional brick-and-mortar banking is becoming increasingly expensive and time-consuming, these innovative internet banking and telephone banking options could make a difference to the region’s economic life,” said Pathak. China’s big experiment in Internet banking has finally begun, with mainland Internet giant Tencent’s WeBank kicking off trial operations this month. “The next big thing is technology, which brings productivity and efficiency to the banking system and helps us reach more credit-strapped people,” noted Pathak. sophia@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218075.html
2015-01-23China and the ASEAN countries will benefit from increased economic cooperation and integration with the creation of the 21st Century Maritime Silk Road, one of China’s most significant and latest national strategies, a China Daily Roundtable conference on the regional economic development outlook heard on Tuesday. “Asia today is on the threshold of a momentous era in economic development and advancement, with China having taken the lead in pushing a string of initiatives that are aimed not only at linking up the whole of Asia, but also at giving the continent the impetus it desperately needs to spur growth after a period of global economic stagnation and uncertainties,” Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, said in his welcome address at the panel session entitled “China, ASEAN and the New Silk Road — Global Financial Perspectives” as part of the Asian Financial Forum (AFF) in Hong Kong. “The New Silk Road illustrates the development of Asia. It connects the world’s second-largest economy with 600 million people of the ASEAN Economic Community. This new dynamic project has the ability to create a tremendous amount of change in finance and business, where Hong Kong is well positioned to tap the opportunities,” stressed Raymond Yip, deputy executive director of the Hong Kong Trade Development Council, the organizer of AFF — one of the most important annual events on the global financial calendar. Xu Ningning, executive president of the China-ASEAN Business Council, affirmed that Hong Kong will have an edge in the development of the New Silk Road, including its strategic geographical location and natural connection with both ASEAN countries and the Chinese mainland, not to mention its strength in financial services and its vibrant business society. Economic Community China and ASEAN states reached a consensus to support the “New Silk Road” at the 17th ASEAN-China Summit in November. Trade value between China and ASEAN increased 8.3 percent on year in 2014, more than two times faster than that for Chinese outbound trade on average. With bilateral trade value pointing at $500 billion in 2015, growth rate is due to exceed 10 percent this year, Xu said. “With the ASEAN Economic Community to be established at the year-end, the New Silk Road will help enhance regional economic cooperation and make ASEAN the first stop for Chinese outbound investment,” Xu said. “With GDP surpassing $2.4 trillion and its rising middle class, the 21st century belongs to ASEAN. However, to benefit from regional integration, we need to have strong economic fundamental and structural reforms, and closer ties with neighboring countries,” Perry Warjiyo, deputy governor of Bank Indonesia, told the audience. Warjiyo emphasized that the gap between ASEAN member states is wide and demand for infrastructure investment is huge. “During the next five years, Indonesia plans to build 15 new airports, 24 ports and over 3,000 kilometers of highways. An estimated $450 billion will be required for these projects and other expansion plans. We are looking for cooperation with other countries, including China and the US,” he said. While ASEAN already represents the world’s seventh-largest economy in terms of GDP, it is on track to become the fourth-largest by 2050. Value of ASEAN-China trade will reach $1 trillion by 2020, said Tan Sri Dr Michael Yeoh, chief executive officer of Asian Strategy and Leadership Institute, Kuala Lumpur. Malaysia has the chairmanship of ASEAN this year. “Given its resource richness and the size of the market, businesses in the region are expected to thrive, which will engage big corporates as well as SMEs in both ASEAN and China,” Yeoh said. “Newly established offshore renminbi clearing banks in Malaysia, Thailand and Singapore will prompt trade and economic contingence with China, which will make China stronger and a true partner of ASEAN.” Identical views were expressed by China-ASEAN Investment Cooperation Fund CEO Li Yao, who said that in linking the Chinese and ASEAN markets, the New Silk Road will promote the circulation of capital flow, technology and goods in the region, facilitating sustainable growth in the long term and, above all, improve mutual trust. “The New Silk Road deserves global attention,” Li emphasized. Huang Yiping, deputy dean of the National School of Development at Peking University, said: “China can contribute to the international economic order by doing what it does best — no matter whether it is construction or providing funding.” Huang said since China is upgrading its industries and rebalancing economic structure amid a slower growth rate, it will become a major direct investor overseas. “China, now the third-largest capital exporter in the world after only the US and Japan, is soon to become the second, given the liberalization of its capital account and overseas relocation of lower-end manufacturers. The New Silk Road will also bring more investment aboard,” he added. Logical market Vivek Pathak, regional director of Asia and the Pacific at the International Finance Corporation, told the session that due to the demands of asset diversification and expansion of Chinese brands, capital outflow from China will be the key phenomenon for the next decade. “ASEAN is the most logical market for China. It is not only important as a market for selling, but also as a manufacturing base for Chinese brands,” he said. Meanwhile, unlike the traditional model where the financial sector follows manufacturers, more Chinese tech giants such as Tencent and Alibaba are set to become involved in financial services and integrated with financial firms in the region and may even get ahead of the traditional banking sector. “While the New Silk Road prompts physical connectivity, in 10 years or less, we are also going to have a virtual cycle connecting ASEAN, China, India and other parts of Asia that provides financial support,” Pathak said. Separately, China’s outbound investment activities along the New Silk Road would provide huge opportunities for service industries based in the Qianhai-Hong Kong zone, said Edward Chen Kwan-yiu, president of the Qianhai Institute for Innovative Research. “Outreach investment is becoming increasingly popular among Chinese enterprises. Other than overseas IPOs, there are going to be more overseas joint ventures and cross-border M&A deals, which will need intermediaries,” Chen forecast. “Given Qianhai’s liberal policies and Hong Kong’s expertise, the Qianhai-Hong Kong zone will demonstrate the new model of China’s growth. Emmadai@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218069.html
2015-01-23Hong Kong will continue to play an important role in mainland economic growth as long as it deepens cooperation with Shenzhen’s Qianhai and capitalizes on its own advantages, Edward Chen Kwan-yiu, president of the Qianhai Institute for Innovative Research, told China Daily. The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone should have a place in the country’s new economic development strategy, especially in terms of developing the mainland’s modern service industry, internationalizing the yuan, liberalizing the capital account and also as a window for mainland enterprises to invest in other countries, Chen said. Chen, who is also Distinguished Institute Fellow and Honorary Professor at The University of Hong Kong, added: “Hong Kong investors should understand and realize the vast opportunities in Qianhai.” He explained that they should understand the importance of Qianhai not as just a small plot of land, they need to understand the mission of Qianhai as laid out by the central government. “If they understand that, I believe more Hong Kong enterprises will go to Qianhai, as well as professionals … Many young people are saying that they don’t have enough opportunities in Hong Kong, why not go to Shenzhen and Qianhai?” This zone aims to benefit both Qianhai and Hong Kong, as it is set against the backdrop of fresh economic growth on the mainland, and the focus of the zone is modern service industries, which include financial, logistics and IT services, as well as the professional and technical services sector, Chen explained, emphasizing that Hong Kong has ample expertise in all four areas. Chen also pointed out that Qianhai needs to be aware of the fact that it cannot attract Hong Kong investors and professionals unless it can convince them that they can do something different in Qianhai compared to the SAR. Many investors and enterprises from Hong Kong are not satisfied with only doing business in Qianhai, they want to use it as stepping stone to reach other parts of the mainland, he said. A lot of work needs to be done, so that Hong Kong and Qianhai can work together to become one effective and cooperative economic zone, said Chen. Meanwhile, Hong Kong must continue to capitalize on its advantages, including its work efficiency, rule of law, supervision and regulation, as well as culture and system, in order to continue to play a key role in the country’s future development, he said. In terms of Hong Kong’s role in the “New Silk Road” trade network, Chen pointed out that the first stage of the road would be infrastructure building, especially sea ports, and mainland enterprises will need a lot of financing for these projects. Qianhai and Hong Kong would be good places for a financing platform, and Hong Kong would also be an intermediary for implementing these investments. Following infrastructure building, there will be a lot of investment opportunities for mainland enterprises abroad, and some policy change may be needed, including on capital control, Chen noted. By then Hong Kong professionals would be very well placed to help capital travel overseas, and help mainland enterprises carry out cross-border merger and acquisitions, he added.
2015-01-23As Asia moves forward into 2015, the region is standing on the threshold of historic opportunities. China is taking the lead in a number of initiatives. The newly proposed Asian Infrastructure Investment Bank will start with $50 billion capital to finance projects across the region. In addition, a Silk Road fund with $40 billion will be set up to boost regional connectivity. In September 2013, the concepts of the New Silk Road and the 21st Century Maritime Silk Road were revived by Chinese President Xi Jinping during an official visit to Southeast Asia. For centuries, the Silk Road, both overland and by sea, facilitated the trading of Chinese silk, spices and tea. The Chinese vision is to create an integrated economic belt to benefit economies along the ancient route — from ports in South China to South and Southeast Asia, the Middle East and Europe. “These plans are exciting, unprecedented and real, offering tremendous opportunities for potential investment,” said Zhou Li, publisher and editor-in-chief of China Daily Asia Pacific, speaking on Jan 20 during a session titled China, ASEAN and the New Silk Road — Global Financial Perspectives. The China Daily-sponsored roundtable event was held as part of the two-day Asian Financial Forum, which kicked off in Hong Kong on Jan 19. There is a great deal of excitement building around opportunities awaiting China and ASEAN. The New Silk Road will connect China, the world’s second-largest economy, with the 600-million-strong Association of Southeast Asian Nations (ASEAN). Today, ASEAN is a fast-growing market with a combined GDP of $2.4 trillion, and is the world’s seventh largest economy. “This new dynamic has the ability to create tremendous forces of change in finance and business,” said Raymond Yip, deputy executive director of the Hong Kong Trade Development Council. “It will impact regional and global economic gravity, setting new ground rules for development and sustainable growth,” Yip told the audience. One view is that the New Silk Road initiative will be conducive to the launch of the ASEAN Economic Community (AEC). By December, ASEAN will see a single market and manufacturing base with free flow of goods, services and labor. Thanks to its geographical proximity, the 10-member ASEAN bloc will be the first stop on China’s ambitious road map. “The realization of the AEC will require regional effort as well as support from neighbors such as China,” said Xu Ningning, executive president of the China-ASEAN Business Council. Although the New Silk Road is a Chinese-proposed concept, it is a “concerted effort” to promote mutual development and shared prosperity in the region, Xu emphasized. While Southeast Asia is a vast region with huge income disparities, the Chinese initiative could be a timely solution to close the development gap in ASEAN. “China has a policy of befriending its neighbors. We will help our ASEAN neighbors to improve their infrastructure,” Xu added. According to the Asian Development Bank, the region will need to invest $750 billion annually in infrastructure during the period 2010-2020. Currently, dozens in infrastructure projects are being financed by a string of Chinese funds. In Indonesia alone, total investments in infrastructure will reach $450 billion in the next five years. State budget will only finance about half of that sum and one-third will come from private funds, especially from abroad, according to Perry Warjiyo, deputy governor of Bank Indonesia, the country’s central bank. Apart from hardware infrastructure development, China-ASEAN collaboration also lies in areas such as finance. The establishment of Chinese yuan clearing banks, such as the Industrial and Commercial Bank of China in Singapore and the Bank of China in Malaysia and Thailand, will also benefit from bilateral trade and economic exchanges, said Michael Yeoh, CEO of the Asian Strategy and Leadership Institute, a Malaysia-based think tank. Yeo said: “China can focus on the three ‘C’s that will deepen bilateral relations: Connectivity, community and centrality. These will make China a true partner for ASEAN.” On the other hand, rapidly growing Chinese homegrown technology brands have made inroads into the country’s financial services sector in recent years. Vivek Pathak, Asia-Pacific director at the International Finance Corporation, envisages the development of a “virtual Silk Road”. “It could be in the form of online financial institutions that could connect ASEAN with China and other economies such as India,” Pathak suggested. From the launch of virtual credit cards to WeBank — China’s first online-only bank launched this month by Internet giant Tencent — new technology is expected to provide new financing channels for small and mid-sized borrowers. In September, Chinese e-commerce leader Alibaba achieved the world’s largest global initial public offering (IPO) at $25 billion. For some, however, what matters most is not the size of Chinese IPOs, however impressive, but the tremendous impact of Chinese enterprises venturing abroad. “The growing ties between China and the region will only encourage more greenfield investments and cross-border mergers and acquisitions by China,” said Edward Chen, a distinguished fellow at the University of Hong Kong, who is also president of the Qianhai Institute for Innovative Research. Established in 2011, the Qianhai special economic zone is situated in the economic hub of Shenzhen, in South China’s Guangdong province. Chen said that Qianhai would serve as an avenue to channel funds from the region for this new wave of investment. His rationale: 2015 is when ASEAN integration reaches new heights with the coming of the AEC. “China certainly would like to further cooperate with the ASEAN to form an economic zone much bigger than before,” Chen said. Panelists also recognized that China’s Silk Road initiative has been met with enthusiasm from some but skepticism from others. One view is that the Chinese proposal should be more than a funding initiative. Asia is not short of development funds pouring in, but sustainability often remains an issue. “How can we have sustainable, long-term growth in terms of financial, environmental and social impacts?” asked Li Yao, CEO of the China-ASEAN Investment Cooperation Fund, a quasi-sovereign fund established by China to support building of infrastructure and energy in ASEAN. He said the key is to build a strong business model and ensure efficiency from the beginning. What is also essential, he added, is to find an adequate link between China’s Silk Road initiative and the global market. “The New Silk Road facilitates the flow of capital, goods and skills. It can be part of the South-South cooperation strategy (as promoted by the United Nations) for developing countries to help one another,” said Li. Huang Yiping, an economics professor at the National School of Development at Peking University, added: “My reading of the New Silk Road is that it is a continuous effort of China’s peaceful rise to supplement — not substitute — the existing economy.” While China has benefited from participation in financial institutions, reforms at bodies such as the International Monetary Fund have been less satisfactory for developing nations. “The New Silk Road and other funding initiatives are ways for China to use its experience to supplement existing institutions,” Huang said. “And the Chinese experience is: In order to get rich, get the roads first.” Lastly, panelists agreed that going by the “Asian way” of consensus, cooperation and understanding would help take forward the Chinese vision of regional integration. “Make sure that no one dominates the scene and the benefits are equally distributed among shareholders,” said Chen from Hong Kong University. jennifer@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218083.html
2015-01-23Mainland outbound direct investment (ODI) is for the first time set to exceed inbound figures, underscoring a trend where the world’s second-biggest economy is poised to become a net outbound investment destination. China’s ODI for 2014 surged 14.1 percent to a new high of $102.9 billion, while foreign direct investment (FDI) rose an annual 1.7 percent to a record $119.56 billion, according to the Ministry of Commerce. Huang Yiping, deputy dean of the National School of Development at Peking University, believes Hong Kong will be given full play amid this scenario, as the nation’s corporate sector, spurred by a cooling economy, is looking offshore to expand its footprint and boost profits. For decades, the mainland has lured multinational manufacturers with cheap labor, business-friendly policies and low-cost raw materials. However, the era of cheap China may be drawing to a close. Official data show that Chinese real income adjusted for inflation increased 8 percent last year, with rural income growing 11.2 percent, even faster than its urban counterpart. Costs are soaring, beginning with the coastal provinces where factories have historically been clustered and where employers are losing their power to draw workers from the hinterland, Huang told China Daily. “As a result, Chinese businesses have set about plowing money overseas to lower costs but find they haven’t got the slightest idea where and how to invest,” Huang said. As a world-class financial service provider, Hong Kong therefore can gear up to help Chinese firms with outbound investment, observed Huang. With China initiating the setting up of the 21st Century Maritime Silk Road, Silk Road Fund and Asia Infrastructure Investment Bank in a move to boost regional investment and economies, Hong Kong will continue to make a big difference despite worries that the SAR may be eclipsed by the rise of Shanghai and other first-tier mainland cities, Huang explained. Uncertainties over these strategic initiatives have sparked doubts and vehement opposition from many developed countries. But the skepticism concerning China’s transparency and governance is quite understandable, Huang said. “The point is how we can shape these landmark initiatives into an open platform for system design and membership. And more importantly, instead of putting forward too many colorful initiatives, working on one or two projects and showcasing our ability will be much more constructive,” Huang pointed out. A further concern is such generous investment may trigger public anger at home as mainland education and medical sectors also need financial support, and under the current political system Chinese taxpayers still cannot check whether the government spends the money in a useful way. Huang pointed out that such concerns highlight the significance of a shift from government-dominated ODI to private enterprises-dominated ODI in the near future. As the government and State-owned enterprises (SOEs) have so far taken the lead in taking money overseas, some investment projects — perhaps inked for the purpose of closer political ties and regional cooperation — are sometimes not very returns-oriented, noted Huang. However, given the strong appetite for capital from many domestic sectors, such a lavish yet inefficient investment mechanism cannot be a long-term policy. “With private enterprises playing a bigger role in a much larger flow of investment abroad, these profit-making bodies can be expected to invest in a more cost-effective way,” said Huang. sophia@chinadailyhk.com
2015-01-23Chinese enterprises will find great investment opportunities in ASEAN countries, especially in the infrastructure, agriculture and trading industries, Xu Ningning, executive president of the China-ASEAN Business Council, told China Daily. Members of the Association of Southeast Asian Nations (ASEAN) have launched numerous infrastructure projects during the last few years, and many Chinese enterprises have been entrusted with these projects due to the advantages they bring of relatively low raw material price as well as design and labor costs, said Xu. In Singapore, Myanmar, Cambodia and Malaysia, Chinese companies have taken a significant market share of the local infrastructure industry, and many new projects are expected to be launched in the future, offering fresh opportunities for Chinese firms, he added. Xu pointed out that State-owned enterprises are generally engaged in large projects like dam-building while private companies prefer smaller projects like mining. Meanwhile, as economic growth in China has also boosted demand for commodities and resources from ASEAN countries — including lignum, mineral resources and consumer goods like fruits and seafood — Chinese enterprises will find good opportunities in the planting and processing industries as well, said Xu. “From what I know, many Chinese companies, mostly private firms engaged in rubber planting, cassava planting, as well as palm oil processing industries in ASEAN countries are doing very well.” Xu also noted that there are many opportunities for cooperation in the manufacturing industry in the ASEAN region. Industrial upgrading is now an important part of economic growth of ASEAN countries, he said, adding that at the same time, many Chinese manufacturers, especially textile and garment makers, are trying to “go out”. ASEAN countries will become an ideal place for Chinese manufactures, thanks to the ASEAN - China Free Trade Area; besides, as many developed countries have launched antidumping and countervailing duty measures and set market barriers against Chinese industrial products, exploring ASEAN markets would enable Chinese companies to expand overseas sales. There are also good opportunities of selling building materials in ASEAN countries, said Xu. Due to the number of infrastructure projects launched, demand for building materials, including lighting equipment, wall materials, ceramic tiles, furniture, and even home appliances, is quite strong, he explained. The “made in China” building materials offer good quality at relatively low prices, which gives Chinese companies a competitive edge, he emphasized. As for the challenges facing Chinese companies keen to invest in ASEAN countries, Xu said the China-ASEAN Business Council suggests that Chinese companies should devise long-term plans about the country they want to invest in, rather than just focus on seeking short-term benefits. Chinese companies should also pay close attention to both product and project quality when they do businesses in ASEAN countries. They should also attach importance to building good relationships with the local government, local people, as well as local press, he advised. Xu also suggested that Chinese companies hire locals into their management team, which could help them understand the local culture and better resolve local issues. sophiehe@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218076.html
2015-01-23“The (ASEAN Economic Community) is just one mission accomplished. People wonder what’s next after 2015,” said Michael Yeoh, CEO of the Malaysia-based Asian Strategy and Leadership Institute. He made his comments at a China Daily roundtable that took place in Hong Kong on Jan 20 with the theme China, ASEAN and the New Silk Road — Global Financial Perspectives. Experts speaking at the roundtable agreed that the Association of Southeast Asian Nations (ASEAN) needs new plans for the post-2015 period after the realization of the AEC, a single regional market, by the end of this year. Developing the post-2015 vision is very important, Yeoh said. Malaysia as the regional bloc’s chair for 2015 has identified the creation of a “people-centered ASEAN” as the central element of this chairmanship. There are two things Malaysia hopes to accomplish as chair of ASEAN, he said. “One is trying to engage the people of ASEAN more — focusing on a people-centered ASEAN — in developing a post-2015 vision,” Yeoh said. The other is to help fast-track the AEC process despite the fact that the 10 member countries are at different stages of development. According to the AEC scorecard, a monitoring mechanism to track the progress of the regional community, 84 percent of the AEC target has been achieved. While this is commendable, it also means that there is still a lot of work left to be done. “I think the prospects for ASEAN are getting better with the realization of AEC, (which is expected) by December of this year,” Yeoh said. “Now, ASEAN is already the seventh biggest economy in the world, and it’s been projected that by 2050, ASEAN can become the world’s fourth biggest economy.” In December, the leaders of the bloc signed the Nay Pyi Taw Declaration on the ASEAN Community’s Post-2015 Vision, which determines to “shape a bold and forward-looking future for ASEAN which will enhance and strengthen the ASEAN Community and enable the realization of a politically cohesive, economically integrated, socially responsible, and a truly people-oriented, people-centered and rules-based ASEAN”. Although little has been revealed about the details of the plan, Le Luong Minh, secretary-general of ASEAN, said earlier that the bloc’s future goals after 2015 include doubling the region’s combined GDP while halving the number of ASEAN people living in poverty by 2030. AEC is a process, rather than an event, Le said. The ASEAN Integration Monitoring Report, jointly produced by the ASEAN Secretariat and the World Bank, suggests that beyond 2015, ASEAN should continue to be a “facilitator of better integration of its members’ economies into the global trading system and pursue an open regionalism agenda”. The report also notes the significance of looking into “streamlining rather than eliminating” non-tariff measures to make them more targeted, simple and effective, while minimizing any trade-restricting impact. “2015 is the year of final exam for ASEAN. The accomplishment of AEC is not only important to ASEAN, but also important to the regional economy and the global economy,” Xu Ningning, executive president of the China-ASEAN Business Council, told delegates at the roundtable. “Reaching the AEC target is not easy. It depends on the 10 countries working together and also needs support from countries from the outside.” Xu said that China’s Maritime Silk Road initiative — which links China to ASEAN, South Asia, the Middle East, North Africa and Europe — will benefit ASEAN in terms of building the AEC and its future economic development after the realization of the regional economic community. China’s trade with ASEAN grew 8.3 percent last year, significantly higher than China’s overall trade growth of 3.4 percent over the same period, Xu said. He pointed out that China’s contribution to the AEC was mainly focused on building physical connectivity and improving related infrastructure such as ports, railways and roads. State-owned companies such as China Harbor Engineering have invested in big connectivity projects in ASEAN. There are also special funds to finance those projects such as the 3 billion yuan ($483 million) China-ASEAN Maritime Cooperation Fund and the $40 billion New Silk Road Fund. Perry Warjiyo, deputy governor of Bank Indonesia, said that Indonesia is investing in major infrastructure projects in the next five years, which include building 15 new airports and expanding 40 existing airports and 15 seaports. Warjiyo said ASEAN’s largest economy will develop its eastern part to link with the Maritime Silk Road, and will build over 3,000 kilometers of roads and railways. Indonesia’s infrastructure projects will be financed by the government and the private sector. Warjiyo said Indonesia hopes to invite more investors from countries including China, Japan, South Korea and the US. Investors who want to invest in ASEAN should consider Hong Kong as a gateway, said Raymond Yip, deputy executive director of the Hong Kong Trade Development Council (HKTDC), adding that Hong Kong is well positioned to play an important role in the new economic dynamic of Asia. “The ASEAN economy as an economic bloc already represents our second largest trading partner, with total bilateral trade reaching $96.3 billion last year,” he said. “Meanwhile, some 500 ASEAN companies already have presences in Hong Kong.” HKTDC data show about 10 percent of trade between the Chinese mainland and ASEAN went through Hong Kong last year. Yip said that Hong Kong will continue to reach the mainland and ASEAN markets, engineering new development and cooperation opportunities in industries such as retail, logistics and infrastructure financing. Hong Kong needs to stay relevant and must not be marginalized in the overall picture, said Li Yao, CEO of the China-ASEAN Investment Cooperation Fund. The Hong Kong-based fund has already raised $1 billion, which has been invested in ASEAN projects such as Cambodia’s national fiber optic cable network, Thailand’s largest port, Asia’s largest potash mine in Laos and Indonesia’s largest ferronickel smelter. These undertakings act as an example of the diversity of infrastructure and other projects in the region even as the establishment of the AEC draws near. benyue@chinadailyhk.com http://www.chinadailyasia.com/2015-01/23/content_15218088.html
2015-01-23