Qu Hongbin, Chief Economist for Greater China, outlined the New Silk Road plan

 

The second annual HSBC China Conference was held during May 2015 with 300 institutional investors and 130 corporates attending to share views about the future of the world’s second-largest economy. The event was organised by HSBC Global Research, Hong Kong and China Equities team. Speakers at the conference discussed China’s accelerating financial reforms and plans to build new infrastructure.

A new wave of infrastructure investment will support China’s continued growth, according to Dr Li Jian-Ge, Vice Chairman of Central Huijin Investment Ltd, a Chinese state-owned investment company.

Dr Li, speaking at HSBC’s annual China Conference in Shanghai, said that continued urbanisation, investment in transport networks and the development of green energy would help the country achieve annual growth of 7 per cent. Dr Li also said he was confident that local government debt was manageable.

Full interest rate liberalisation and capital account liberalisation are expected by the end of year, according to HSBC Global Research

Qu Hongbin, Chief Economist for Greater China, HSBC, outlined the New Silk Road plan, the People’s Republic of China’s ambitious infrastructure project that goes beyond China’s borders. He estimated that the countries along the plan’s land and sea routes accounted for 63 per cent of the world’s population and 29 per cent of global GDP. He said further financial reform would be needed to unlock the estimated USD890 billion of investment that the project requires.

Dr Fan Jianping, Chief Economist at China’s State Information Center, said that the government would strengthen efforts to build a multi-tier capital market system. Dr Jianping also said that China’s monetary policies would be prudent and balanced, with fiscal policies focused on revitalising existing funds and restricting debt.

Speakers at the conference also discussed China’s accelerating financial reforms. Full interest rate liberalisation and capital account liberalisation are expected by the end of year, according to HSBC Global Research. Rakesh Patel, Co-Head of Equities, Asia-Pacific, HSBC, said that China was breaking new ground in providing foreign investors with increased exposure to the ‘new China’.