The 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
2015-01-23China and ASEAN (Association of Southeast Asian Nations) countries are to benefit each other 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 region's 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 at not only linking up the whole of Asia, but also 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 welcoming 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, in which 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 has its special advantages in the development of the New Silk Road, including its strategic geographic location and its natural connection with ASEAN countries (The Association of Southeast Asian Nations), as well as the Chinese mainland, not to mention its strength in financial services. "The end of this year is expected to witness the establishment of the ASEAN Economic Community, which the New Silk Road will help to promote. It could be the first stop of Chinese outbound investment. Meanwhile, China can also support infrastructure construction to solve the imbalance within ASEAN," Xu said. China, ASEAN economic bonds set to strengthen "We estimate that ASEAN will become world's fourth-largest economy by 2050. But demand for infrastructure investment is huge," said Perry Warjiyo, deputy governor of Bank Indonesia. "We are opening up for investments and make the economy more market driven. During the next five years, in Indonesia alone, we will build 15 new airports, 24 ports and over 3,000 kilometers of highways. An estimated $450 billion is needed for all these projects and more. We are looking for closer cooperation with other countries, including China and the US," he said. While working together to update infrastructure in ASEAN member states, the New Silk Road will also help to keep the South China Sea peaceful, said Tan Sri Dr Michael Yeoh, chief executive officer of Malaysia's Asian Strategy and Leadership Institute. "The setting up of various offshore renminbi clearing centers in ASEAN will deepen its connectivity with China and make the economy stronger," Yeoh said. Identical views were expressed by China-ASEAN Investment Cooperation Fund Chief Executive Officer Li Yao, who said that linking China and ASEAN markets together, the New Silk Road will promote the circulation of capital flow, technology and goods in the region, facilitating sustainable growth in the long term. Vivek Pathak, director of Asia Pacific Department at International Finance Corporation, told the session that due to the demand to diversify asset location and expand Chinese brands, capital outflow from China will be the key phenomenon for the next decade. "ASEAN is the most logical market for Chinese mainland manufacturers, given its size and growth, and the financial service sector will follow," he said. http://www.chinadaily.com.cn/hkedition/2015-01/21/content_19362959.htm
2015-01-21Regional Leading Experts DiscussNew Silk Road and Asian Economic Development Jan 20 2015, Hong Kong - More than 300 delegates representing some of the largest financial institutions from around the world participated in a special panel session organized by China Daily at the Asian Financial Forum held at the Hong Kong Convention and Exhibition Center on January 20, 2015. Speakers at the panel on “China, ASEAN and the New Silk Road - Global Financial Perspectives,” included leaders in government, finance and academia. To facilitate further development and cooperation of the various Asian economies, which have already become an engine of global growth, China has initiated several groundbreaking initiatives that include “21st Century Maritime Silk Road”, “One Belt One Road”, and “Silk Road Fund” since 2013.Meanwhile, ASEAN economies are focusing on building closer financial and trade ties for common development.These initiatives will not only result incloser economic ties between China and the ASEAN, but also create regionalprosperity that can have a profound impact on the global economic landscape. Mr. ZHOU Li, Publisher & Editor-in-Chief of China Daily Asia Pacific said in the welcoming speech that with China having taken the lead in pushing a string of initiatives, Asia today is on the threshold of a momentous era in economic development and advancement. “The New Silk Road illustrates the development of Asia. This new dynamic has the ability to create tremendous amount of change in finance and business, in which Hong Kong is well positioned to tap the opportunities," stressed Mr.Raymond YIP, Deputy Executive Director of Hong Kong Trade Development Council, the organizer of AFF, one of the most important annual events on global financial calendar. The panelistsincluded Mr. XU Ningning, Executive President of China-ASEAN Business Council; Dr. LI Yao, Chief ExecutiveOfficer of China-ASEAN Investment Cooperation Fund (CAF); Dr. Perry WARJIYO, Deputy Governor of Bank Indonesia; Tan Sri Dr. Michael YEOH, Co-Founder and Chief Executive Officer, Asian Strategy and Leadership Institute (ASLI); Mr. Vivek PATHAK, Regional Director Asia and the Pacific of International Finance Corporation;Prof. HUANG Yiping,Professor of Economics and Deputy Dean of National School of Development, Peking University and Prof. Edward CHEN, Distinguished Institute Fellow and Honorary Professor of The University of Hong Kong, and President of Qianhai Institute for Innovative Research. Hong Kong has its special advantages in the development of the New Silk Road, including its strategic geographic location and its natural connection with ASEAN countries as well as the Chinese mainland, affirmed Xu. He expected that the New Silk Road will help to promotethe establishment of ASEAN Economic Community by the end of this year. "We estimate ASEAN will become the world's fourth largest economy by 2050. But demand for infrastructure investment is huge", said Warjiyo.“Linking China and ASEAN markets together, the New Silk Road promotes circulation of capital flow, technology and goods in the region, which facilitates sustainable growth in the long term”, said Li.Pathak maintained that ASEAN is the most logical market for Chinese manufacturers, given its size and growth. “And the financial service sector will follow,” he added.The setting up of various offshore yuan clearing centers in ASEAN will deepen its connectivity with China and make the economy stronger, said Yeoh.Huang and Chen also shared their view on the topic from China perspective, based on China economic transformation and experiment such as Qianhai Free Trade Zone. This China Daily Asia Leadership Roundtable panel marks the cooperation with Hong Kong Trade Development Council (HKTDC) onAsian Financial Forum (AFF) for the fourth consecutive year, providing a platform for exchanging market intelligence and exploring new business opportunities across Asia. Panelists from China and ASEAN were sharing their views on the topic. From left to right: Mr. XU Ningning, Executive President of China-ASEAN Business Council; Dr. LI Yao, Chief Executive Officer of China-ASEAN Investment Cooperation Fund (CAF); Prof. HUANG Yiping, Professor of Economics and Deputy Dean of National School of Development, Peking University; Mr. Alexander WAN, Senior Advisor of China Daily Asia Pacific (moderator); Dr. Perry WARJIYO, Deputy Governor of Bank Indonesia; Tan Sri Dr. Michael YEOH, Co-Founder and Chief Executive Officer, Asian Strategy and Leadership Institute (ASLI); Mr. Vivek PATHAK, Regional Director Asia and the Pacific of International Finance Corporation; and Prof. Edward CHEN, Distinguished Institute Fellow and Honorary Professor of The University of Hong Kong, and President of Qianhai Institute for Innovative Research. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, Asian and Western countries. Roundtable events are held in major cities across Asia. PDF Download: attach/pdf/AFF%2020012015/Press%20release.pdf
2015-01-21中國日報四度攜手亞洲金融論壇 匯聚業界精英共議新絲路與亞洲經濟發展 (2015年1月20日香港)今日,中國日報第四次攜手亞洲金融論壇,舉辦題為「中國,東盟和新絲綢之路——全球金融發展視角」的論壇。七位來自政、學、商界的專家各抒己見,探討新絲綢之路及東盟經濟共同體成立給中國以及東盟各國帶來的機遇和挑戰,論壇吸引了逾300名來自世界各地的金融業精英人士參與。 亞洲近年來經濟騰飛,舉世矚目,成為世界經濟發展的重要引擎;東西方不約而同地預示二十一世紀將是「亞洲世紀」。自2013年來,中國接連提出「二十一世紀海上絲綢之路」、「一帶一路」、「絲綢之路基金」等一系列戰略規劃,東盟經濟共同體亦著眼於發展與合作,建立更緊密的金融、貿易紐帶。 這些舉措不僅將推動中國及東盟的地區一體化進程,促進亞洲區內合作及發展,亦將對世界經濟版圖產生深遠影響。但與此同時,在瞬息萬變的世界經濟形勢下,亞洲經濟發展也面臨前所未有的挑戰。 中國日報亞洲領袖圓桌論壇連續四年與香港貿易發展局合作舉辦專題論壇,為來自亞洲金融及相關行業人士提供了一個相互交流與探討的平台,解讀新形勢下中國、東盟及世界金融面臨的挑戰與機遇,以便於亞太區內成員交換市場信息,助力亞洲地區開拓新的營商機遇。 中國日報亞太分社社長兼總編輯周立先生在致辭中表示,21世紀海上絲綢之路、亞洲基礎設施投資銀行等計劃是前所未有的,這些都將有利於亞洲地區的經濟發展和金融合作。東盟經濟共同體正在建立的貨物、服務與資金流將進一步推動東南亞經濟圈的發展。香港貿易發展局副總裁葉澤恩先生在致辭中也表示,在亞洲金融論壇與大家共同探討中國、東盟和新絲綢之路的發展具有非凡意義。 論壇邀請到中國-東盟商務理事會執行理事長許寧寧先生;中國-東盟投資合作基金總裁李耀博士;印尼銀行副行長佩里‧瓦吉悠博士;亞洲策略與領導研究院創始人兼首席執行官丹斯里拿督楊元慶博士;國際金融公司亞太局局長Vivek PATHAK先生;北京大學國家發展研究院教授、副院長黃益平教授;香港大學傑出院士及名譽講座教授、前海創新研究院院長陳坤耀教授作為演講嘉賓,他們結合當下中國、東盟及世界金融形勢發展,分析了行內的合作機會及未來發展動向。 許寧寧表示中國與東盟有著山水相連的關係,雙方經貿的互補性對經濟的發展具有重要意義,新絲綢之路的建設將有利於東盟共同體的建成,並且將發揮重要作用。在新絲綢之路的建設中,香港可以發揮其重要的區位及經濟優勢,推動中國及東盟國家的貿易往來及發展,實現互利共贏。 佩里‧瓦吉悠指出在東盟經濟貿易往來中,印度尼西亞政府在基礎設施建設等方面給予了大力支持。他強調,東盟共同體的建設離不開體內各國的共同支持與促進。丹斯里拿督楊元慶表示中國與東盟國家的不斷貿易往來將進一步促進雙邊經濟的共同發展,新絲綢之路的建設將給雙方帶來更多的合作與發展機遇,中國將更好地成為東盟國家的最大貿易夥伴。 李耀對新絲綢之路的建設與發展提出了兩個方向。首先,中國及東盟國家如何促進雙邊經濟貿易可持續發展;其次是新絲綢之路將怎樣連接中國-東盟與全球經濟發展。新絲綢之路不斷促進資金、技術等流向東盟的發展中國家。中國在國際南南合作項目中發揮著重要作用,中國及東盟國家的互相信任才能促進雙方的長足互利發展。Vivek PATHAK表示中國及東盟的金融發展離不開基礎設施建設,新絲綢之路等一系列計劃將會促進中國同東盟國家之間貿易、技術、資金等合作。 黃益平指出新絲綢之路的建設是中國在發揮其經濟互利合作的優勢,以促進中國與東盟國家的不斷發展。在經濟的轉型發展下,中國也在不斷調整經濟策略,未來將會有更多的海外貿易經濟合作,促進雙方的貿易及經濟往來。最後,陳坤耀就前海-香港經濟合作區在新絲綢之路及在東盟經濟發展中的重要性做出闡述。前海-香港經濟合作區內的金融服務行業、物流行業及IT行業將會為中國與東盟國家的金融貿易提供更多合作與發展機遇。 中國日報亞洲領袖圓桌論壇與亞洲金融論壇攜手舉辦題為“中國,東盟和新絲綢之路——全球金融發展視角”的論壇,匯聚了近三百名來自世界各地的金融行業精英。圖為論壇現場的演講嘉賓:中國-東盟商務理事會執行理事長許寧寧先生;中國-東盟投資合作基金總裁李耀博士;北京大學國家發展研究院教授、副院長黃益平教授;印尼銀行副行長佩里‧瓦吉悠博士;亞洲策略與領導研究院創始人兼首席執行官丹斯里拿督楊元慶博士;國際金融公司亞太局局長Vivek PATHAK先生;香港大學傑出院士及名譽講座教授、前海創新研究院院長陳坤耀教授。 中國日報亞洲領袖圓桌論壇與亞洲金融論壇攜手舉辦題為“中國,東盟和新絲綢之路——全球金融發展視角”的論壇,匯聚了近三百名來自世界各地的金融行業精英。圖為論壇現場的演講嘉賓:中國-東盟商務理事會執行理事長許寧寧先生;中國-東盟投資合作基金總裁李耀博士;北京大學國家發展研究院教授、副院長黃益平教授;印尼銀行副行長佩里‧瓦吉悠博士;亞洲策略與領導研究院創始人兼首席執行官丹斯里拿督楊元慶博士;國際金融公司亞太局局長Vivek PATHAK先生;香港大學傑出院士及名譽講座教授、前海創新研究院院長陳坤耀教授。 -完- 中國日報亞洲領袖圓桌論壇是一個由亞洲國家和地區的政、商、學界領袖和社會精英參與的高端對話和交流平台,圍繞亞洲地區經濟、商業、產業和社會發展等具有戰略影響的重要議題展開討論,至今已經舉辦了31屆,逾萬名決策精英參與。 PDF Download: attach/pdf/AFF%2020012015/%E6%96%B0%E8%81%9E%E7%A8%BF.pdf
2015-01-21Industry Leaders Meet in Hong Kong Investment Opportunities in China’s Entertainment Industry Powered by the Internet Dec 5, 2014, Hong Kong – China Daily held a Special Panel Session on “The Midas Touch: A New Breed of Investors in China's Entertainment Industry Powered by the Internet” at Hong Kong Venture Capital and Angel Investment Conference at 10.45am to 11.30am in Hong Kong Convention and Exhibition Centre toexplore investment opportunities in China’s flourishing Entertainment Industry. China has been striving to develop its culture industry with heavy investment in the production of movies, TV series and other programs suitable for the new media. With its huge population and a rapidly growing middle-class, China's entertainment market is growing the fastest in the world. According to estimates by the Motion Picture Association of America, there are 13 new cinemas opening in China every day. Last year, The Chinese movie market overtook Japan as the world's second largest in box office revenue. Alibaba pioneered the establishment of an investment fund through which investors can invest in the production of movies, TV programmes and online games. Since then, several other technology companies, including Baidu, Tencent and many others, have also introduced similar funds. Mr. ZHOU Li, Publisher & Editor-in-Chief of China Daily Asia Pacific opened the session highlighting China's cultural industry, especially the film industry,is blossoming exponentially. This lucrative industry has attracted a new wave of internet-led investors.Mr. Zhou also welcomed distinguished speakers, including Mr. WANG Guo Wei, Founder, National Film Capital; Mr. David CHEN, Co-Founder, AngelVest and Mr. Karon WAN, Public Sector Managing Partner, Deloitte Consulting (Hong Kong) Limited. Mr. Wang observed the rise in China’s movie industry. He says, “we have witnessed an explosive investment growth in China’s movie industry in the first half of 2014.” Mr. Chen agreed that China’s entertainment industry is flourishing with increased capital injection into the industry. “We’ve seen many trends happening in entertainment and media industries in China during the past couple of years, very similar to what we’ve seen in the US about two decades ago.” Mr. Wan also saw a new breed of investors in China’s entertainment industry, saying that “the entertainment industry in China is actually moving very fast, people are investing in this industry for various of reasons and they are not necessarily experts.” This is our first cooperation with Hong Kong Science & Technology Parks Corporation and our session has attracted over 400 angel investors and entrepreneurs to garner insights on unprecedented investment and financial opportunities in China’s cultural industry which is effectuated by the Internet. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, Asian and Western countries. Roundtable events are held in major cities across Asia. (http://www.cdroundtable.com)
2014-12-10The 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
2015-01-23China and ASEAN (Association of Southeast Asian Nations) countries are to benefit each other 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 region's 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 at not only linking up the whole of Asia, but also 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 welcoming 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, in which 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 has its special advantages in the development of the New Silk Road, including its strategic geographic location and its natural connection with ASEAN countries (The Association of Southeast Asian Nations), as well as the Chinese mainland, not to mention its strength in financial services. "The end of this year is expected to witness the establishment of the ASEAN Economic Community, which the New Silk Road will help to promote. It could be the first stop of Chinese outbound investment. Meanwhile, China can also support infrastructure construction to solve the imbalance within ASEAN," Xu said. China, ASEAN economic bonds set to strengthen "We estimate that ASEAN will become world's fourth-largest economy by 2050. But demand for infrastructure investment is huge," said Perry Warjiyo, deputy governor of Bank Indonesia. "We are opening up for investments and make the economy more market driven. During the next five years, in Indonesia alone, we will build 15 new airports, 24 ports and over 3,000 kilometers of highways. An estimated $450 billion is needed for all these projects and more. We are looking for closer cooperation with other countries, including China and the US," he said. While working together to update infrastructure in ASEAN member states, the New Silk Road will also help to keep the South China Sea peaceful, said Tan Sri Dr Michael Yeoh, chief executive officer of Malaysia's Asian Strategy and Leadership Institute. "The setting up of various offshore renminbi clearing centers in ASEAN will deepen its connectivity with China and make the economy stronger," Yeoh said. Identical views were expressed by China-ASEAN Investment Cooperation Fund Chief Executive Officer Li Yao, who said that linking China and ASEAN markets together, the New Silk Road will promote the circulation of capital flow, technology and goods in the region, facilitating sustainable growth in the long term. Vivek Pathak, director of Asia Pacific Department at International Finance Corporation, told the session that due to the demand to diversify asset location and expand Chinese brands, capital outflow from China will be the key phenomenon for the next decade. "ASEAN is the most logical market for Chinese mainland manufacturers, given its size and growth, and the financial service sector will follow," he said. http://www.chinadaily.com.cn/hkedition/2015-01/21/content_19362959.htm
2015-01-21Regional Leading Experts DiscussNew Silk Road and Asian Economic Development Jan 20 2015, Hong Kong - More than 300 delegates representing some of the largest financial institutions from around the world participated in a special panel session organized by China Daily at the Asian Financial Forum held at the Hong Kong Convention and Exhibition Center on January 20, 2015. Speakers at the panel on “China, ASEAN and the New Silk Road - Global Financial Perspectives,” included leaders in government, finance and academia. To facilitate further development and cooperation of the various Asian economies, which have already become an engine of global growth, China has initiated several groundbreaking initiatives that include “21st Century Maritime Silk Road”, “One Belt One Road”, and “Silk Road Fund” since 2013.Meanwhile, ASEAN economies are focusing on building closer financial and trade ties for common development.These initiatives will not only result incloser economic ties between China and the ASEAN, but also create regionalprosperity that can have a profound impact on the global economic landscape. Mr. ZHOU Li, Publisher & Editor-in-Chief of China Daily Asia Pacific said in the welcoming speech that with China having taken the lead in pushing a string of initiatives, Asia today is on the threshold of a momentous era in economic development and advancement. “The New Silk Road illustrates the development of Asia. This new dynamic has the ability to create tremendous amount of change in finance and business, in which Hong Kong is well positioned to tap the opportunities," stressed Mr.Raymond YIP, Deputy Executive Director of Hong Kong Trade Development Council, the organizer of AFF, one of the most important annual events on global financial calendar. The panelistsincluded Mr. XU Ningning, Executive President of China-ASEAN Business Council; Dr. LI Yao, Chief ExecutiveOfficer of China-ASEAN Investment Cooperation Fund (CAF); Dr. Perry WARJIYO, Deputy Governor of Bank Indonesia; Tan Sri Dr. Michael YEOH, Co-Founder and Chief Executive Officer, Asian Strategy and Leadership Institute (ASLI); Mr. Vivek PATHAK, Regional Director Asia and the Pacific of International Finance Corporation;Prof. HUANG Yiping,Professor of Economics and Deputy Dean of National School of Development, Peking University and Prof. Edward CHEN, Distinguished Institute Fellow and Honorary Professor of The University of Hong Kong, and President of Qianhai Institute for Innovative Research. Hong Kong has its special advantages in the development of the New Silk Road, including its strategic geographic location and its natural connection with ASEAN countries as well as the Chinese mainland, affirmed Xu. He expected that the New Silk Road will help to promotethe establishment of ASEAN Economic Community by the end of this year. "We estimate ASEAN will become the world's fourth largest economy by 2050. But demand for infrastructure investment is huge", said Warjiyo.“Linking China and ASEAN markets together, the New Silk Road promotes circulation of capital flow, technology and goods in the region, which facilitates sustainable growth in the long term”, said Li.Pathak maintained that ASEAN is the most logical market for Chinese manufacturers, given its size and growth. “And the financial service sector will follow,” he added.The setting up of various offshore yuan clearing centers in ASEAN will deepen its connectivity with China and make the economy stronger, said Yeoh.Huang and Chen also shared their view on the topic from China perspective, based on China economic transformation and experiment such as Qianhai Free Trade Zone. This China Daily Asia Leadership Roundtable panel marks the cooperation with Hong Kong Trade Development Council (HKTDC) onAsian Financial Forum (AFF) for the fourth consecutive year, providing a platform for exchanging market intelligence and exploring new business opportunities across Asia. Panelists from China and ASEAN were sharing their views on the topic. From left to right: Mr. XU Ningning, Executive President of China-ASEAN Business Council; Dr. LI Yao, Chief Executive Officer of China-ASEAN Investment Cooperation Fund (CAF); Prof. HUANG Yiping, Professor of Economics and Deputy Dean of National School of Development, Peking University; Mr. Alexander WAN, Senior Advisor of China Daily Asia Pacific (moderator); Dr. Perry WARJIYO, Deputy Governor of Bank Indonesia; Tan Sri Dr. Michael YEOH, Co-Founder and Chief Executive Officer, Asian Strategy and Leadership Institute (ASLI); Mr. Vivek PATHAK, Regional Director Asia and the Pacific of International Finance Corporation; and Prof. Edward CHEN, Distinguished Institute Fellow and Honorary Professor of The University of Hong Kong, and President of Qianhai Institute for Innovative Research. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, Asian and Western countries. Roundtable events are held in major cities across Asia. PDF Download: attach/pdf/AFF%2020012015/Press%20release.pdf
2015-01-21中國日報四度攜手亞洲金融論壇 匯聚業界精英共議新絲路與亞洲經濟發展 (2015年1月20日香港)今日,中國日報第四次攜手亞洲金融論壇,舉辦題為「中國,東盟和新絲綢之路——全球金融發展視角」的論壇。七位來自政、學、商界的專家各抒己見,探討新絲綢之路及東盟經濟共同體成立給中國以及東盟各國帶來的機遇和挑戰,論壇吸引了逾300名來自世界各地的金融業精英人士參與。 亞洲近年來經濟騰飛,舉世矚目,成為世界經濟發展的重要引擎;東西方不約而同地預示二十一世紀將是「亞洲世紀」。自2013年來,中國接連提出「二十一世紀海上絲綢之路」、「一帶一路」、「絲綢之路基金」等一系列戰略規劃,東盟經濟共同體亦著眼於發展與合作,建立更緊密的金融、貿易紐帶。 這些舉措不僅將推動中國及東盟的地區一體化進程,促進亞洲區內合作及發展,亦將對世界經濟版圖產生深遠影響。但與此同時,在瞬息萬變的世界經濟形勢下,亞洲經濟發展也面臨前所未有的挑戰。 中國日報亞洲領袖圓桌論壇連續四年與香港貿易發展局合作舉辦專題論壇,為來自亞洲金融及相關行業人士提供了一個相互交流與探討的平台,解讀新形勢下中國、東盟及世界金融面臨的挑戰與機遇,以便於亞太區內成員交換市場信息,助力亞洲地區開拓新的營商機遇。 中國日報亞太分社社長兼總編輯周立先生在致辭中表示,21世紀海上絲綢之路、亞洲基礎設施投資銀行等計劃是前所未有的,這些都將有利於亞洲地區的經濟發展和金融合作。東盟經濟共同體正在建立的貨物、服務與資金流將進一步推動東南亞經濟圈的發展。香港貿易發展局副總裁葉澤恩先生在致辭中也表示,在亞洲金融論壇與大家共同探討中國、東盟和新絲綢之路的發展具有非凡意義。 論壇邀請到中國-東盟商務理事會執行理事長許寧寧先生;中國-東盟投資合作基金總裁李耀博士;印尼銀行副行長佩里‧瓦吉悠博士;亞洲策略與領導研究院創始人兼首席執行官丹斯里拿督楊元慶博士;國際金融公司亞太局局長Vivek PATHAK先生;北京大學國家發展研究院教授、副院長黃益平教授;香港大學傑出院士及名譽講座教授、前海創新研究院院長陳坤耀教授作為演講嘉賓,他們結合當下中國、東盟及世界金融形勢發展,分析了行內的合作機會及未來發展動向。 許寧寧表示中國與東盟有著山水相連的關係,雙方經貿的互補性對經濟的發展具有重要意義,新絲綢之路的建設將有利於東盟共同體的建成,並且將發揮重要作用。在新絲綢之路的建設中,香港可以發揮其重要的區位及經濟優勢,推動中國及東盟國家的貿易往來及發展,實現互利共贏。 佩里‧瓦吉悠指出在東盟經濟貿易往來中,印度尼西亞政府在基礎設施建設等方面給予了大力支持。他強調,東盟共同體的建設離不開體內各國的共同支持與促進。丹斯里拿督楊元慶表示中國與東盟國家的不斷貿易往來將進一步促進雙邊經濟的共同發展,新絲綢之路的建設將給雙方帶來更多的合作與發展機遇,中國將更好地成為東盟國家的最大貿易夥伴。 李耀對新絲綢之路的建設與發展提出了兩個方向。首先,中國及東盟國家如何促進雙邊經濟貿易可持續發展;其次是新絲綢之路將怎樣連接中國-東盟與全球經濟發展。新絲綢之路不斷促進資金、技術等流向東盟的發展中國家。中國在國際南南合作項目中發揮著重要作用,中國及東盟國家的互相信任才能促進雙方的長足互利發展。Vivek PATHAK表示中國及東盟的金融發展離不開基礎設施建設,新絲綢之路等一系列計劃將會促進中國同東盟國家之間貿易、技術、資金等合作。 黃益平指出新絲綢之路的建設是中國在發揮其經濟互利合作的優勢,以促進中國與東盟國家的不斷發展。在經濟的轉型發展下,中國也在不斷調整經濟策略,未來將會有更多的海外貿易經濟合作,促進雙方的貿易及經濟往來。最後,陳坤耀就前海-香港經濟合作區在新絲綢之路及在東盟經濟發展中的重要性做出闡述。前海-香港經濟合作區內的金融服務行業、物流行業及IT行業將會為中國與東盟國家的金融貿易提供更多合作與發展機遇。 中國日報亞洲領袖圓桌論壇與亞洲金融論壇攜手舉辦題為“中國,東盟和新絲綢之路——全球金融發展視角”的論壇,匯聚了近三百名來自世界各地的金融行業精英。圖為論壇現場的演講嘉賓:中國-東盟商務理事會執行理事長許寧寧先生;中國-東盟投資合作基金總裁李耀博士;北京大學國家發展研究院教授、副院長黃益平教授;印尼銀行副行長佩里‧瓦吉悠博士;亞洲策略與領導研究院創始人兼首席執行官丹斯里拿督楊元慶博士;國際金融公司亞太局局長Vivek PATHAK先生;香港大學傑出院士及名譽講座教授、前海創新研究院院長陳坤耀教授。 中國日報亞洲領袖圓桌論壇與亞洲金融論壇攜手舉辦題為“中國,東盟和新絲綢之路——全球金融發展視角”的論壇,匯聚了近三百名來自世界各地的金融行業精英。圖為論壇現場的演講嘉賓:中國-東盟商務理事會執行理事長許寧寧先生;中國-東盟投資合作基金總裁李耀博士;北京大學國家發展研究院教授、副院長黃益平教授;印尼銀行副行長佩里‧瓦吉悠博士;亞洲策略與領導研究院創始人兼首席執行官丹斯里拿督楊元慶博士;國際金融公司亞太局局長Vivek PATHAK先生;香港大學傑出院士及名譽講座教授、前海創新研究院院長陳坤耀教授。 -完- 中國日報亞洲領袖圓桌論壇是一個由亞洲國家和地區的政、商、學界領袖和社會精英參與的高端對話和交流平台,圍繞亞洲地區經濟、商業、產業和社會發展等具有戰略影響的重要議題展開討論,至今已經舉辦了31屆,逾萬名決策精英參與。 PDF Download: attach/pdf/AFF%2020012015/%E6%96%B0%E8%81%9E%E7%A8%BF.pdf
2015-01-21Industry Leaders Meet in Hong Kong Investment Opportunities in China’s Entertainment Industry Powered by the Internet Dec 5, 2014, Hong Kong – China Daily held a Special Panel Session on “The Midas Touch: A New Breed of Investors in China's Entertainment Industry Powered by the Internet” at Hong Kong Venture Capital and Angel Investment Conference at 10.45am to 11.30am in Hong Kong Convention and Exhibition Centre toexplore investment opportunities in China’s flourishing Entertainment Industry. China has been striving to develop its culture industry with heavy investment in the production of movies, TV series and other programs suitable for the new media. With its huge population and a rapidly growing middle-class, China's entertainment market is growing the fastest in the world. According to estimates by the Motion Picture Association of America, there are 13 new cinemas opening in China every day. Last year, The Chinese movie market overtook Japan as the world's second largest in box office revenue. Alibaba pioneered the establishment of an investment fund through which investors can invest in the production of movies, TV programmes and online games. Since then, several other technology companies, including Baidu, Tencent and many others, have also introduced similar funds. Mr. ZHOU Li, Publisher & Editor-in-Chief of China Daily Asia Pacific opened the session highlighting China's cultural industry, especially the film industry,is blossoming exponentially. This lucrative industry has attracted a new wave of internet-led investors.Mr. Zhou also welcomed distinguished speakers, including Mr. WANG Guo Wei, Founder, National Film Capital; Mr. David CHEN, Co-Founder, AngelVest and Mr. Karon WAN, Public Sector Managing Partner, Deloitte Consulting (Hong Kong) Limited. Mr. Wang observed the rise in China’s movie industry. He says, “we have witnessed an explosive investment growth in China’s movie industry in the first half of 2014.” Mr. Chen agreed that China’s entertainment industry is flourishing with increased capital injection into the industry. “We’ve seen many trends happening in entertainment and media industries in China during the past couple of years, very similar to what we’ve seen in the US about two decades ago.” Mr. Wan also saw a new breed of investors in China’s entertainment industry, saying that “the entertainment industry in China is actually moving very fast, people are investing in this industry for various of reasons and they are not necessarily experts.” This is our first cooperation with Hong Kong Science & Technology Parks Corporation and our session has attracted over 400 angel investors and entrepreneurs to garner insights on unprecedented investment and financial opportunities in China’s cultural industry which is effectuated by the Internet. About China Daily Asia Leadership Roundtable The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia providing platforms for focused dialogue, issue investigation, and possible collective action on strategic issues relating to economic, business and social development in Asia. Our aim is to enhance communication and increase mutual understanding between China, Asian and Western countries. Roundtable events are held in major cities across Asia. (http://www.cdroundtable.com)
2014-12-10