Chongqing - The forum on Enhancing Financial Connectivity for the CCI-New International Land-Sea Trade Corridor (CCI-ILSTC) was held in Chongqing on April 21, 2023.

On April 21, 2023, the forum on Enhancing Financial Connectivity for the CCI-New International Land-Sea Trade Corridor (CCI-ILSTC) was held in Chongqing. (Photo/Wang Zhiyu)

As one of the main activities of the 5th China-Singapore Chongqing Connectivity Initiative Financial Summit (CCI-FS), many domestic and foreign guests discussed how to utilize policy finance and commercial finance, strengthen product innovation, and enhance the medium-term and long-term capital supply capacity for the construction of the ILSTC.

Other topics include how to achieve financial market interconnection in cross-border financial management and mutual recognition of funds, how to integrate the financial resources of the countries along the route through the formation of international banks, the establishment of national funds, and the expansion of cross-border investment and financing; and how to integrate the financial resources of countries along the ILSTC and create a high-quality financial cooperation platform to serve the construction of the ILSTC, etc.

"Overall, the necessary infrastructure for financial connectivity between China and ASEAN has been initially built," said Wang Huiyao, Founder and President of the Center for China and Globalization (CCG) and Former Counselor to China State Council.

Wang introduced that from 2009-2021, the size of the China-ASEAN bilateral local currency swap agreement has increased from USD 2.6 billion to USD 11.6 billion, a 3.4-fold expansion. 

However, he thinks financial services to achieve deeper interconnection still face some problems. China and ASEAN should make good use of the opportunity for RCEP to develop more cooperation in the development and certification of financial standards, data sharing, and flow.

Wang said that Chongqing should also play a more important role in deepening financial connectivity between China and ASEAN.

China and ASEAN achieving point-to-point change

"While global trade is experiencing challenges, regional trade is opening up new opportunities," said Joyce Tee, Managing Director and Head of Institutional Banking Group, DBS Bank (China) Limited.

Jiang Ping Thia, Lead Economist and Manager of the Economics Department at the Asian Infrastructure Investment Bank, said Singapore is a financial center in Southeast Asia, and Chongqing is a financial center in Western China. 

The CCI will further support regional connectivity projects, green and sustainable infrastructure, and projects that promote digital inclusion and technology empowerment under the framework of China-Singapore financial cooperation.

The financial cooperation between Chongqing and Singapore is driving closer ties between China and ASEAN and achieving point-to-point change, said Thia.

The forum also unveiled practical achievements in financial innovation, such as the Chongqing CBRC's Cross-border Ease of Finance Digital Financial Services Platform, which will enable the interconnection of enterprises, financial institutions, and government departments, and the direct connection and handling of financial services.