G-finance Green Development Financial Innovation Financial Cooperation

USA - English

• USA - English

CHANGCHUN, China, Sept. 7 /PRNewswire-Asia/ -- After the international financial crisis, many countries in the world have come to realize the necessity for economic restructuring and growth pattern transformation. The green economy has become an issue of universal interest. Against this backdrop, the 6th Changchun High-level International Finance Meeting of Northeast Asia Investment and Trade Expo was successfully held at the Conference Center of the Songyuan Hotel in Changchun City of Jilin Province. The theme of the meeting was G-finance -- New Drive for Development Model Transformation.

The meeting focused on how to boost green financial innovation, and the linkage, interaction and fusion between G-finance and existing financial systems. It was co-sponsored by China Development Bank, Export-Import Bank of China, Agricultural Development Bank of China and Jilin Provincial People's Government. Present at the meeting were executives from Chinese and foreign financial institutions, economists and leaders of Jilin Provincial People's Government, including Ma Delun, Deputy Governor of People's Bank of China, Jiang Jianqing, Chairman of Industrial and Commercial Bank of China, Li Ruogu, Chairman and President of Export-Import Bank of China, Zheng Hui, President of Agricultural Development Bank of China, Zhang Yun, President of Agricultural Bank of China, Li Lihui, President of Bank of China, Xie Duyang, Chairman of Board of Supervisors of China Construction Bank, Li Renjie, President of China Industrial Bank, Zhu Yanfeng, Executive Vice Governor of Jilin Provincial People's Government and Robert A. Mundell, the 1999 Nobel Laureate of Economics. They delivered wonderful speeches and carried out in-depth discussions on how G-finance can boost economic growth and become a new drive to advance the transformation of economic growth model.

Jiang Jianqing, Chairman of Industrial and Commercial Bank of China, noted that China is currently experiencing a green revolution, green economy will become the most important enabler for China's economic growth in the future, and it is now the right time for China's banking industry to advance G-finance. After the international financial crisis broke out, the Chinese government accelerated its planning on new energy, new material, modern service and other green industries. In the next decade, China will invest nearly RMB 5 trillion in new energies, spawning an enormous demand. It also further established and strengthened industrial zones and financial policies that can help develop green economy, improved the mechanism for sharing environmental protection information, set up environment exchanges in Beijing and Shanghai, and set out to explore multi-layered market trading systems for carbon emission rights and carbon finance. Therefore, the external conditions for the Chinese banking industry to vigorously develop G-finance are getting increasingly mature. In addition, China's banking industry has made many helpful trials in the area of G-finance in recent years, including accelerating the construction of green credit, setting up green financial service institutions, establishing management systems and assessment standards for G-finance and granting loans to clean energy projects on a trial basis. Consequently, it has accumulated much experience.

Zhang Yun, President of Agricultural Bank of China, said that the bank is closely related to the development of G-finance and industries featuring the virtuous cycle in the future. Therefore, the bank should be incorporated into a G-finance system. It will highlight the requirements of G-finance in decision-making of its board of directors, credit culture, internal operation management and corporate social responsibility. During credit restructuring, the bank will actively engage itself into green economy, circular economy and low-carbon industries, deny credit support to any outdated projects that don't comply with China's energy conservation and emission reduction requirements, and strictly enforce the credit access conditions. In addition, it will actively promote green financial products. Agricultural Bank of China is the first Chinese bank to issue a debit card with the theme of environmental protection, advance financial services for clean development, study carbon trading rules and innovate carbon trading products and services.

Li Lihui, President of Bank of China, noted that the construction of a green financial system is still at the initial stage in China. Currently, the pivot is to establish laws and regulations on low-carbon economy and carbon emission, formulate low-carbon economy plans and break down the carbon emission ration to different regions, industries and enterprises. Moreover, China should put in place unified carbon emission standards, and develop feasible technologies. On top of that, the financial industry should promote the construction of a green financial system through an innovative mindset. Specifically, it should enhance policy guidance to G-finance, formulate environmental protection and environmental risk assessment standards, encourage banking, insurance, securities, funds and other financial institutions to deeply involve themselves in green financial business, improve laws and regulations on G-finance, define assessment indicators and improve assessment systems through legislation, and intensify the punishment of malpractice. Financial institutions should speed up innovation, explore and promote loans, securities, bonds, funds and other green financing products, establish carbon ration trading, carbon options, futures and other products.

In addition, guests also offer some practical suggestions on how to boost G-finance. Shao Fujun, Director General of Credit Management Bureau of the People's Bank of China, said that the bank is currently establishing corporate and individual information databases, and will promote the construction of a credit system so as to solve the problem of information asymmetry in G-finance. Mi Jianguo, Director-General of the Information Center and Development Research Center of the State Council, indicated that to address the opportunities for G-finance, China needs to break the monopoly of the three US-based credit rating institutions, and establish local credit rating institutions. Zou Dongtao, Director of China Institute for Reform and Development of China University of Finance and Economics proposed factoring to pay for energy conservation so as to build a virtuous cycle and put G-finance into practice.

In addition, participants also identified problems that should be attended and solved when implementing G-finance. For instance, financial institutions orally accept standards of G-finance, but in practice do not change much, or pursue profit in the name of environmental protection. Moreover, some enterprises fail to have an adequate drive for G-finance. John Milligan-Whyte, Chairman of Center for America-China Partnership, said that green industries would bring US$ 4 trillion worth of business opportunities and even more than 10 trillion by 2013. China is a major market for G-finance and green economy, where pollution prevention and control, and emission reduction will bring more profit and GDP growth. Therefore, financial institutions in China need to carefully address this trend of economic growth.

At the closing ceremony, Li Ruogu, Chairman and President of Export-Import Bank of China, and executive chairman of the ceremony read the Songyuan Consensus on G-finance, which was adopted by the Changchun High-level International Finance Meeting. The main contents of the consensus are as follows:

    1. G-finance refers to the aggregate of financial factors that can support
       the development of green industries and green-oriented reform of
       traditional industries, including various financial systems and
       arrangements that facilitate green development, institutions, markets,
       products, talents and trading activities.

    2. G-finance emerges along with green development. The core of green
       development is scientific development, sustainable development and
       harmony between humans and nature. G-finance can boost and support
       green development, and in turn, green development can provide a
       direction and market for G-finance.

    3. G-finance is a revolution in finance. It represents a new development
       trend of international financing industry, which can provide a new
       drive to boost global economic growth and present a new opportunity for
       financial restructuring.

    4. Build a new mechanism in which the market and government work together
       to promote green development. Bring into play the role of the financial
       market in allocating resources and the government's regulatory role so
       as to boost the transition of green agriculture, green manufacturing
       and green service from spontaneous action to conscious activity.

    5. G-finance is becoming the most dynamic sector in financial industry.
       The development of green industries and green-oriented reform of
       traditional industries posts an increasing demand for G-finance. The
       carbon financing system and trading technology are getting increasingly
       mature and trading activities more vigorous. Proactively promote the
       formation and development of green financial models and a green
       financial industry, and make great effort to boost innovations in green
       credit, green bonds, green stocks and green insurance.

    6. International cooperation is an important engine for the development of
       G-finance. Carry out various forms of international cooperation, and
       vigorously promote the formulation of G-finance rules, standard
       coordination, product innovation, institutional development, talent
       training and green certification.

    7. The establishment of a positive incentive mechanism is the key to
       boosting G-finance. Accelerate the construction of a legal framework
       and regulatory mechanism for G-finance, support the establishment of
       positive fiscal and taxation policies, boost innovation in G-finance
       and advance the transition to green economy.

    8. Set up a global G-finance growth award and appoint a representative and
       authoritative accreditation committee and an expert committee to reward
       financiers, business leaders and economists that make great
       contributions to the growth of global G-finance.

    9. On top of wide exchange and consultation, proactively boost the
       establishment of an international organization for cooperation on
       G-finance.

Li Ruogu also drew an excellent conclusion to the meeting. The Songyuan Consensus on G-finance is a result of different ideas meeting one another, and also the fruit of collective wisdom. G-finance emerges as the green economy develops. The development of green economy calls for the support of G-finance, which can become a new drive for the transformation of the economic growth pattern only when it is incorporated into sustainable green economy. Despite the many difficulties and obstacles, G-finance will still embrace a bright future. As advocates of G-finance, we are facing heavy tasks and a long road ahead. Being the executive body of G-finance, we must advance courageously.

In conclusion, Wang Rulin, Governor of Jilin Province, delivered a message of appreciation as the host, expressing congratulations on the successful conclusion of the meeting on behalf of CPC Jilin Provincial Committee and Jilin Provincial People's Government. Wang also extended sincere thanks to competent authorities and financial institutions that render much support to the meeting, also to people that helped make the meeting possible. He also noted that the Songyuan Consensus on G-finance, the fruit of the meeting, will make a great contribution to the development of G-finance and financial innovation, and inject new dynamics for the development of finance in Jilin Province.

SOURCE Global Entrepreneur Magazine