Important Speeches
Keynote Speech by Mr. Chen Yuan, Vice Chairman of the CPPCC National Committee
Dear friends at home and abroad, Members of the financial sector:
Good morning! It’s a pleasure to gather here with all of you, old and new friends, to witness the Opening Ceremony of the Asian Financial Cooperation Association (AFCA). First of all, I would like to extend my warm congratulations to the convening of this meeting, which symbolizes the establishment of the AFCA! Welcome!
At the opening ceremony of the Boao Forum for Asia in 2015, President Xi Jinping proposed to actively promote the construction of regional financial cooperation system, explore the establishment of platform for the exchange and cooperation among Asian financial institutions, and strengthen the pragmatic cooperation in monetary stability, investment and financing, credit rating and other areas. Subsequently, at the Boao Forum for Asia and many other international conferences, Premier Li Keqiang has called for financial institutions in Asia to jointly initiate and establish Asian Financial Cooperation Association with the aim of strengthening the cooperation and resource integration, promoting experience sharing and business exchanges and among regional financial institutions, and jointly maintaining the economic and financial stability in the region. The above initiative has received great attention and positive response from the international community and the financial industry. At present, the members of AFCA have reached 107, covering over 20 countries and regions of five continents.
As one of the most dynamic and potential regions in the world today, Asia enjoys vast landmass and long history of civilization. The aspirations of all peoples to pursue peace, development, cooperation and win-win are firm and strong. The links between the economies and the rest of the world has never been closer. The development of Asia is closely related to human well-being, and the security of Asia is in harmony with world peace. At the same time, we also see that there are big differences in the political systems of Asian economies, rich and diverse history and culture, uneven economic and social development, complex and varied regional challenges for security and development, and we’re still facing the problem of security governance and sustainable development in many areas.
At present, Asia has become an important engine of world economic growth, but still faces many challenges. Developing countries and emerging economies, taking up a majority in the Asian region, are facing a large capital gap in economic construction and social development, multi-levels for financing demand as well as high sustainability requirements. According to the estimates of Asian Development Bank, in the next 8-10 years, Asia's annual needs for fund in infrastructure only would reach 730 billion US dollars, while the World Bank estimated the number would be as high as about 800 billion US dollars. By comparison, the total annual investment in Asia’s infrastructure from the world’s two largest international financial institutions (Asian Development Bank and the World Bank) is only about 30 billion US dollars.
Financial cooperation is an indispensable adhesive for the steady financial system. It not only requires strong cooperation between Asian countries, but also active involvement from countries and regions outside Asia. With the deepening of economic globalization, the ongoing transnational flow of production factors and the highly mingling of interests of different countries and regions, the international community is becoming one with shared interest in which one cannot live alone without the cooperation with others. Today, with the increasing interdependence between the world economies, the global financial market is getting increasingly close, the transmission channels of financial turmoil are complex with a quick yet unpredictable spread effect. Moreover, with the overlap of global economic risks and transformation, the uncertainties of the financial market are on the increase. One of the lessons from the Asian financial crisis is that there is a lack of regional financial cooperation before, while and after the crisis, leading to the behavior of benefiting oneself at the expense of neighbor countries and the frequent currency war. After the 2008 international financial crisis, the G20 held 11 summits, and the vast majority of countries in the world have reached a global consensus that the global financial crisis must be addressed with the people of the world and the coordinated action of governments.
AFCA, established for the needs of regional financial cooperation, appears at the right time. With the philosophy of “connectivity, cooperation, joint governance and shared benefits”, AFCA, on the one hand, is committed to building a platform for exchanges and cooperation between Asian financial institutions, strengthening cooperation and integrating financial resources, jointly maintaining regional financial stability and providing more support for the regional economic development. On the other hand, through the governance structure of institutional arrangements, AFCA facilitates all members in the common governance of the association and together benefit from its services and results.
AFCA Member units are expected to follow the trend of cooperation and multi-win, seek cooperation, build consensus, work for the overall situation, jointly promote the steady development of AFCA and promote the Asian financial cooperation to a new level.
First, strengthen the exchange of financial ideas. Members should make use of this AFCA platform to exchange information, deepen understanding, enhance friendship, and form unique circle of friends in the financial sector; through participation in the high-end forums, summits and other events held by AFCA, members should explore financial problems commonly faced inside and outside the region and cutting-edge issues, share the optimal financial practices and exchange the latest ideas in finance.
Second, strengthen financial cooperation. With the continuous development of the Asian economy, there will be more and more financial exchanges and cooperation within and outside the region. Cooperation will be deepened in the existing trade finance, cross-border syndicated loans, financial business, financial crime struggle and financial education and other areas. Besides, it is also necessary to explore new ways of financial cooperation in Asia. AFCA member institutions should fully analyze the global financial panorama, study the international financial trend, find the core issues and challenges, carry out investigation and research, and explore new areas and possible programs of Asian financial cooperation, contributing to build the “financial cooperation platform” and promote the deepening of financial cooperation in Asia.
Third, strengthen financial security cooperation. Build a stable and sustainable financial security system with controllable risk; establish a cooperation mechanism in which members can share information, benefit and risks and set up a sound international credit system to improve the ability to resist risks; jointly build a regional mechanism for anti-financial fraud and financial risk prevention and control, study and prevent major systemic financial risks and events in the region.
Fourth, actively fulfill social responsibilities. Strengthen communication and cooperation with parties concerned to promote harmony in economic, social and environmental development. Vigorously develop inclusive finance, build a diversified financing system and a multi-level capital market, improve the financial service network, and effectively alleviate financing difficulties of small and medium enterprises. Vigorously develop green finance, issue green bond market, enhance the role of green investment in the financial system, and contribute to Asia’s sustainable development.
AFCA is an association of all its member units, an association aiming to promote regional financial cooperation. It is hoped that in the future, AFCA will follow the international practice and rules, uphold the principles of co-construction, co-governance and sharing, persist in reaching its goals, unite and cooperate to build a new future for Asian financial cooperation.
Finally, I wish the opening ceremony of the AFCA a complete success! Thank you all!