2020 Oujiang River Financial Forum & Series of Activities on Financial Services for the Private Economy
Hosted by the Wenzhou Municipal People’s Government, the 2020 Oujiang River Financial Forum & Series of Activities on Financial Services for the Private Economy concluded yesterday afternoon (December 20).
Launched on December 18, 2020, the event spanned three days. The centerpiece was the 2020 Oujiang River Financial Forum, held on the afternoon of December 18 at the Shangri-La Hotel. Under the theme “New Landscape, New Mandate, New Journey of Financial Services for the Development of the Private Economy”, the forum explored how to advance a new round of financial reform, expand financial opening-up and cooperation, and embark on a new journey of financial support for the private economy against the backdrop of fostering the “dual circulation” new development paradigm, based on a review of the phased achievements of Wenzhou’s financial reform.
Leading officials from relevant departments of Zhejiang Province, Wenzhou and Shanghai attended and addressed the forum. The event also invited several prominent figures from China’s financial sector, including Jiang Jianqing, Zhu Min and Li Yang, to offer insightful suggestions and forward-looking views on how Wenzhou’s private economy can better play its role and how the financial industry can better serve and support its development under the new development paradigm of mutually reinforcing domestic and international dual circulation, as well as in the full implementation of the central government’s tasks of “stability on six fronts” and “security in six areas”.During the forum, the Wenzhou Comprehensive Financial Services Platform was officially launched. The Wenzhou Municipal Government and the Municipal Financial Work Office also signed financial cooperation agreements with several Shanghai-based financial institutions and higher education institutions, respectively.
As an important part of the Oujiang River Financial Forum, the Series of Activities on Financial Services for the Private Economy was held at Wenzhou International Convention and Exhibition Center from December 18 to 20, 2020. More than 100 financial institutions from Wenzhou and surrounding regions participated.The series of activities served as both a comprehensive review and objective summary of Wenzhou’s financial reform, and an active effort to identify entry points, prioritize key tasks, and implement concrete measures to further deepen reform.
The venue featured a variety of well-received activities: an exhibition of achievements in Wenzhou’s comprehensive financial reform; a showcase of listed companies in 2020; investment and financing project matchmaking and roadshows; special lectures on financing policies; financial planning seminars to meet public wealth management needs; and campus recruitment campaigns launched by banks to support the “stability on six fronts” and “security in six areas” initiatives. The series of activities achieved continuous highlights and enthusiastic participation.
High-Level Forum with Distinguished Delegation
The 2020 Oujiang River Financial Forum & Series of Activities on Financial Services for the Private Economy was a rare high-standard event in Wenzhou.
The 2020 Oujiang River Financial Forum was graced by a distinguished gathering of guests and officials.Present at the forum were Chen Weijun, Member of the Standing Committee of the Zhejiang Provincial Party Committee and Secretary of the Wenzhou Municipal Party Committee; Zhu Congjiu, Vice Governor of the People’s Government of Zhejiang Province; Xie Dong, Director of the Shanghai Local Financial Supervision and Administration Bureau; and Yao Gaoyuan, Deputy Secretary of the Wenzhou Municipal Party Committee and Mayor of Wenzhou.The forum invited three highly influential figures in China’s financial sector to deliver keynote speeches:Jiang Jianqing, President of the China-Europe Lujiazui Institute of International Finance, former Chairman of the Industrial and Commercial Bank of China, and former President of the China Banking Association;Zhu Min, Dean of the National Institute of Financial Research at Tsinghua University, former Vice Governor of the People’s Bank of China, and former Deputy Managing Director of the International Monetary Fund;Li Yang, Chairman of the National Institution for Finance & Development, former Vice President of the Chinese Academy of Social Sciences, and former Member of the Monetary Policy Committee of the People’s Bank of China.In addition, more than a dozen renowned scholars and experts from China’s financial industry participated in the two roundtable sessions, including:Mo Wangui, Deputy Director of the Financial Research Institute of the People’s Bank of China;Yao Yudong, Vice President and Chief Economist of Dacheng Fund Management Co., Ltd., and former Director of the Financial Research Institute of the People’s Bank of China;Lian Ping, Chairman of the China Chief Economist Forum, Chief Economist of Cixin Investment, and former Chief Economist of the Bank of Communications;Nan Cunhui, Member of the Standing Committee of the National Committee of the Chinese People’s Political Consultative Conference, Vice Chairman of the All-China Federation of Industry and Commerce, and Chairman of Chint Group;Wang Song, President of Guotai Junan Securities Co., Ltd.;Hu Ruyin, Member of the Strategic Advisory Committee for National Manufacturing Power Construction, and former Chief Economist of the Shanghai Stock Exchange;Tu Youfu, Secretary-General of the Shanghai Financial Association;Chen Qiwei, Vice President of the Shanghai Private Equity Association and Director of the China Venture Capital Research Center;Zhuo Fumin, Vice President of the China Association of Chief Financial Officers and Executive President of its Private Enterprise Branch, and Co-Chair of the Local Association Special Committee and Legal Affairs Special Committee of the Asset Management Association of China.
Large Scale & Wide Participation of Financial Institutions
The 2020 Wenzhou Series of Activities on Financial Services for the Private Economy opened on the morning of December 18 at Wenzhou International Convention and Exhibition Center.
Present at the opening ceremony were Yao Gaoyuan, Deputy Secretary of the Wenzhou Municipal Party Committee and Mayor of Wenzhou Municipal People’s Government; Yao Yudong, Vice President and Chief Economist of Dacheng Fund Management Co., Ltd. and former Director of the Financial Research Institute of the People’s Bank of China; Tu Youfu, Secretary-General of the Shanghai Financial Association; and Yin Zhijun, Vice Mayor of Wenzhou Municipal People’s Government.The event was distinguished by its large scale, with a display area of nearly 10,000 square meters, consisting of:An exhibition of achievements in Wenzhou’s comprehensive financial reform, A showcase of enterprises listed in 2020, An investment and financing project matchmaking and roadshow area, A financial institution product and service area, A special lecture area for financial services, A talent recruitment area for financial institutions. More than 100 financial institutions from inside and outside Wenzhou participated, including:Banks: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Shanghai Pudong Development Bank, Bank of Shanghai, Wenzhou Bank, Zheshang Bank, Insurance companies: China Life Insurance, Ping An Life, China Pacific Life Insurance, New China Life Insurance, Taikang Life Insurance, Securities companies: Shanghai Securities, ShenwanHongyuan, Galaxy Securities, Founder Securities, Fund companies, microcredit companies, wealth management institutions, and fintech institutions.
In the exhibition area dedicated to Wenzhou’s successfully listed enterprises in 2020, the following listed companies fully presented their corporate image:Petpal Animal Nutrition Technology Co., Ltd.,Wenzhou Global Auto Parts Group Co., Ltd.,Panda Dairy Group Co., Ltd.,Zhejiang Aokang Shoes Co., Ltd.,Zhejiang Huafeng Spandex Co., Ltd.,Zhejiang Semir Apparel Co., Ltd.,Zhejiang Tianzheng Electric Co., Ltd.,Zhejiang Weiming Environment Protection Co., Ltd.,Zhejiang Zhengkang Industrial Co., Ltd.,Zhejiang Chint Electrics Co., Ltd.,
Zhejiang Zhongyin Fashion Co., Ltd.
High Strategic Vision & Innovative Perspectives
At the 2020 Oujiang River Financial Forum, participating experts put forward a host of highly targeted proposals based on Wenzhou’s local conditions, charting the course for Wenzhou’s financial sector to better serve the private economy.
In his address on the future direction of Wenzhou’s financial reform and development, Jiang Jianqing — President of the China-Europe Lujiazui Institute of International Finance, former Chairman of the Industrial and Commercial Bank of China, and former President of the China Banking Association — put forward four proposals:
First, the real economy is the foundation of Wenzhou’s economy. It was in Wenzhou that the credit market for small and micro enterprises first took shape. Small and micro enterprises represent a vast market. Attention should be paid to enterprises facing difficulties — including small and medium-sized enterprises, start-ups, small and micro businesses, and private enterprises — and efforts should be made to develop inclusive finance substantively
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Second, Wenzhou should comprehensively strengthen capital market development and strive to build a diversified financial system. In the next stage of Wenzhou’s financial reform, emphasis should be placed on improving the financing structure, expanding channels for direct financing, and promoting the deep integration of private capital into the financial market.
Third, the educational function of risk cases should be valued. We must not waste the educational value of financial risks. Severe problems require resolute measures; Wenzhou should leverage its experience as one of the first regions to encounter financial risks to take the lead in breaking through such difficulties.
Fourth, financial information management should be prioritized. Under the new landscape, the government should take the lead in integrating information and data, planning and establishing a comprehensive financial services platform to act as a provider of financial services and an important data service provider in the economic system. By accumulating transaction, financial, logistics and other information across various sectors, the platform will facilitate bank-enterprise matching and achieve unimpeded financing.
In his speech, Zhu Min — Dean of the National Institute of Financial Research at Tsinghua University, former Vice Governor of the People’s Bank of China, and former Deputy Managing Director of the International Monetary Fund — noted that finance was traditionally discussed in terms of risk control, reform and opening-up. Yet, all these efforts are intended to serve development.He stated that Wenzhou has already mastered the approaches to financial risk control and should now shift its focus to development, which is highly significant.In China, most financing comes from bank loans, and bonds are largely traded in the interbank market, while equity and bond financing account for a small share. Of bank lending, most is directed toward corporate loans, while lending to small and micro enterprises, as well as the service sector, remains weak — this represents a major area for business transformation in banking.Although the total volume of bond issuance is large, it mainly consists of short-term financing bonds. The bond market for genuine long-term capital is underdeveloped, representing another vast market.Zhu Min expressed confidence that Wenzhou enjoys great potential to take the lead in these areas.With ample capital, why can’t Wenzhou channel more funds to support innovation and technology?He emphasized that all players are now competing for the commanding heights of the fund industry.
Li Yang, Chairman of the National Institution for Finance & Development, Former Vice President of the Chinese Academy of Social Sciences, and Former Member of the Monetary Policy Committee of the People’s Bank of China, stated in his speech that the dual circulation theory is the most influential framework for China’s current development. He outlined four key points in understanding this theory: 1. to fully utilize both domestic and international markets and resources; 2. to accelerate the establishment of a new development paradigm with the domestic cycle as the mainstay and the dual domestic and international cycles reinforcing each other; 3. to emphasize the openness of the new development paradigm; 4. to position this strategy at the level of national institutional development and build a more robust open economic system.
He expressed hope that Wenzhou will successfully advance its comprehensive financial reform.
Two roundtable forums followed, themed “Deepening Financial Reform to Boost the Transformation and Development of Private Enterprises” and “Financial Support for Private Enterprises in the Yangtze River Delta Regional Integration” respectively.Mo Wangui, Deputy Director of the Financial Research Institute of the People’s Bank of China, pointed out that integrating an effective financial market with a proactive government is crucial to building institutional mechanisms that enable finance to strongly support the private and micro-enterprise sectors.An effective financial market requires efficient matching of financial supply and demand. As supply-side structural reform in the financial sector moves forward, local governments should help foster competitive modern industries and enterprises to expand effective financial demand.A proactive government needs to address information asymmetry and risk-taking by financial institutions. Local governments can improve institutional and assessment mechanisms, strengthen credit information platforms and risk-sharing arrangements, incentivize financial institutions to take reasonable risks, and expand financing coverage and scale.
Diverse Activities & Distinct Highlights
On the afternoon of December 18, at the 2020 Oujiang River Financial Forum, the Wenzhou Comprehensive Financial Services Platform was officially launched.As China’s first pilot zone for comprehensive financial reform, Wenzhou has developed this innovative platform supported by big data, cloud computing and artificial intelligence. It integrates financing, matchmaking, credit assistance and tech-enabled financial services to better serve the real economy.By the end of November, the platform’s “Financial Supermarket” had hosted all 51 financial institutions in Wenzhou. It had issued loans totaling 35.7 billion yuan, supported 12,470 small and micro enterprises in obtaining credit lines worth 39.1 billion yuan, with an average interest rate of 4.7%.A total of 251 financial products were made available on the platform, covering secured loans, credit loans, housing provident fund loans, bank-tax interaction loans and other specialized financing schemes.
Meanwhile, Wenzhou has stepped up all-round and multi-dimensional financial cooperation with Shanghai.During the forum, the Wenzhou Municipal People’s Government signed cooperation agreements with the Shanghai Stock Exchange, Guotai Junan Securities Co., Ltd., the Shanghai Financial Association and other institutions; The Wenzhou Municipal Financial Work Office signed agreements with the College of Business at Shanghai University of Finance and Economics, the China Institute of Finance at Shanghai Jiao Tong University, Zhongye Capital and other organizations;and the Administrative Committee of Wenzhou Oujiangkou Industrial Cluster signed agreements with China Satellite Global Service Alliance and Zhongye Capital.The capital project matchmaking event held on the first day of the Series of Activities on Financial Services for the Private Economy received an enthusiastic response from investors and project owners.
The “Smart Investment for Dreams, Joint Creation for the Future” project roadshow carefully selected enterprises and projects in targeted industries from Wenzhou and surrounding areas.
The roadshow session was held in a lively atmosphere, with several projects attracting strong interest from investors.
Experts from investment institutions competed to try on the new anti-slip material shoes launched by Zhejiang Anbaole Technology Co., Ltd. They stood on an inclined surface coated with cooking oil to experience the anti-slip effect and gave high praise.
In addition, the Wuliao Bookstore project by Zhejiang New Reading Culture Communication Co., Ltd. attracted the attention of several investment institutions, with promising prospects for in-depth cooperation.
Thirteen participating banks provided a large number of jobs for university graduates at the event, making effective explorations in implementing the initiatives of “stability on six fronts” and “security in six areas”.The available positions included both middle and high-end roles and entry-level posts suitable for new graduates.Some banks also held campus recruitment events at the series of activities to offer employment opportunities for soon-to-graduate students.
According to preliminary statistics, nearly 1,500 people attended the special lectures during the series of activities.The lecture “Tax Planning for High-Quality Enterprise Development” held by the Agricultural Bank of China was fully attended.In addition, lectures and seminars including 2021 Macroeconomic and Investment Outlook and Innovative Value of Supply Chain Finance by PULING Wealth, 2021 Big Data Quantitative Investment Strategy, as well as “Post-Epidemic Era: RMB Exchange Rate Trends and Strategies” by China CITIC Bank, all provided valuable insights and inspiration for the audience.
On December 20, the organizer arranged a distinctive public welfare activity, inviting nearly 50 students majoring in Financial Management from the Business School of Wenzhou University to visit and study at the event venue.The visit focused on helping students gain a better understanding of the operations, products and services offered by various financial institutions, laying a solid foundation for their future academic studies and career development.Ms. Li, a student participant, told reporters that it was a rare opportunity to get close contact with nearly 100 financial institutions all at once and learn about their business models. She added that the visit had helped her set clearer goals for her future studies.
Diverse Products & Cutting-Edge Technology
During the three-day Series of Activities on Financial Services for the Private Economy, various financial institutions launched a wide range of financial products and exhibited the latest fintech smart devices, helping micro, small and medium-sized enterprises (MSMEs) and Wenzhou citizens better manage their finances.
Bank financial products mainly fall into two categories: one is financing products tailored for MSMEs, including secured loans and credit loans; the other is wealth management products for Wenzhou residents, covering consumer loans, bank wealth management products and credit cards. Typical examples include BOC’s Quick Mortgage Loan, CCB’s Fast Secured Loan, Wenzhou Bank’s Wenyu Loan, SPD Bank’s Housing Mortgage Express Loan, and BOCOM’s Online Mortgage Loan. The interest rates for such products generally range from 3.75% to 4%, with a maximum credit limit of up to 10 million yuan.
Each bank’s loan products also feature unique advantages. For instance, Wenzhou Bank’s Wenyu Loan allows secondary mortgage applications using properties with outstanding loans; CCB’s Cloud Tax Loan is renowned for its speed, enabling same-day disbursement; Minsheng Bank’s MSME Loan offers a maximum 10-year principal-free renewal; BOCOM’s Online Tax Financing and Online Mortgage Loan can be used in combination; ABC’s Housing Mortgage Express Loan accepts properties outside Wenzhou as collateral. The launch of these personalized products effectively meets the diversified financing needs of private enterprises.
Mr. Yao, who has just started his business, made a special trip to the event after learning about the series of activities. He focused on understanding the financing products of multiple banks and conducted a detailed comparison of interest rates. When he learned that some banks accept secondary mortgage loans for properties with outstanding debts, he let out a sigh of relief. “I own a property with some remaining provident fund loans unpaid. I used to think I couldn’t use it as collateral to apply for a loan. It’s great that Wenzhou Bank is willing to accept such properties as collateral,” he said.
In addition to banks, other types of financial institutions also participated in the event, including insurance companies, securities firms, and microcredit companies. The insurance industry launched specialized protection products covering employee work-related injuries and medical care; securities firms focused on providing services to enterprises with listing needs; and microcredit companies rolled out products with low thresholds and fast disbursement to meet the short-term capital turnover needs of MSMEs.
Cutting-edge technological products also made their way to the event venue. Industrial and Commercial Bank of China placed its robot “Gongxiaozhi” at the booth, allowing visitors to communicate with it at any time; China CITIC Bank’s “Mobile Banking (Version 5.0)” enabled consumers to complete quick registration on-site; by scanning the QR code for Bank of Communications’ Micro and Small Online Credit Express Loan, users could check their eligible loan limit within 5 minutes. The integration of fintech aligned the Series of Activities on Financial Services for the Private Economy closely with the trend of the times, enabling smoother and more efficient services for economic development.