Cooperation, and strengthen the Asian financial

 This article is based on the author in 2009 Shanghai Forum, finishing the round table made of speech. At last, published in the Fudan University, vice president of economics, finance professor at Sun Lijian
Today, in the U.S. financial tsunami triggered by the global front, both the U.S. dollar is the dominant currency reform the existing system, or to correct the imbalance between the current world economic situation, the internationalization of RMB and the Asian dollar concept have become the concerns of countries in the world. We note that in 1998 started from the Asian financial cooperation model, although from the Chiang Mai Initiative of bilateral currency swap framework of cooperation has been extended to the Asian Monetary Fund, multilateral cooperation (AMF) model,cheap UGG boots, however, its size, role and cooperation model consensus on the need is still very limited, for example, some countries due to a high degree of financial liberalization, the exodus of capital in Europe and America in the process suffered a major loss, Asian cooperation should take full advantage of this model to get rid of sharp depreciation of their currencies, the market price of the plight of serious damage, but we see Korea as a relief route is still 97 years before the financial crisis, IMF-led aid modalities and the United States. However, Governor Zhou Xiaochuan made from the reserve currency over the sovereignty concept to Wang Qishan on the IMF reform issues raised by the rights and obligations of such requirements; from the Foreign Ministry spokesman on the dollar raised the concerns of the printing press to start the State Council for approval Shanghai World Financial Center building programs, from Premier Wen Jiabao called for infrastructure to help countries in the Asian investment funds, to the Japanese experts on the Shanghai Forum, South Korean experts brought their countries to the Asian financial cooperation and constructive comments are shows that China and Asia are starting to focus on monetary dominance issues. This is a the world's dynamic economic region so far no one can play a significant world economic stage of the yuan, and the gap is very large compared to)!
the following to the theme for today, I expounded on the Chinese Government and Asian countries Asian financial and stronger hedge greater efforts to promote financial many bear the risk of taking their and Asia on the world stage in the formation of national wealth in their favor preservation of the Financial Environment.
one, the need for stronger financial
First of all, the world's largest economy,UGG shoes, China and Japan currently has the world's largest dollar-denominated assets, today, we are increasingly aware of: assets and the risk of departure from the commission created to manage foreign exchange wealth of the United States commitment to the strategy does not match the benefits and risks of their own. Whether the crisis brought about by the direct loss, or the interests of the United States itself to inject liquidity into the supremacy of the rescue policy the negative impact we are so deeply felt in Asia and our world is the lack of a hedge, is imperative to start the problem. dragging day, we assume the context of globalization and the degree of market risk will increase the possibility of that. Fortunately, the details of Shanghai international financial center, already made some and the of to their high savings to alleviate the serious imbalance in the world economic structure (the release of the foreign enterprises and consumers in Asia the wealth effect), but the financial markets in Asia today can not be mature enough to become the future of Asian consumers smooth their consumption, powerful channels. The Shanghai Forum in Asia,Discount UGG boots, many scholars have been aware of and strengthen their financial necessity, and brought his country to strengthen regional financial cooperation model of policy recommendations. In other words, if the Asian financial not bigger and stronger, So, Europe requires more consumption in Asia is no market-based, it is not sustainable.
Third, East Asian countries, including OECD member countries, including Japan and South Korea today, and hope that their country's competitiveness had to extend to the financial sector, however, are the world's financial system, there are many defects, it is neck and neck with each other because everyone's sake, that makes two-thirds of foreign reserves in Asia with countries around the world today, competition for dominance in the competitive financial become so intense. Tokyo, Seoul, Singapore, Mumbai has a specific to itself as the Asian regional international financial center grand plan. and, countries are aware of the financial development is not only to improve their pricing the value of national wealth, but also have their help to promote industrial upgrading, industrial restructuring, and product and business to the world stage. Therefore, in this environment of the Asian financial cooperation mode if you do not meet market needs, or in the implementation of the framework of the Chiang Mai, then Obviously it importance and effectiveness of Hui increasingly lower, but the good news is that Asian countries have recognized this problem.
Fourth, the world is Xuyao Asia, especially China, in the international monetary system play a more active role. The Chinese government has taken initiative to deal with the method, not the past that the strategy taken by keeping a low profile. This is mainly because the Chinese government realized that the voices of the world conform to the idea of stronger RMB, RMB appreciation than passive acceptance and an open capital account pressure much better. Of course, we must clearly aware of the actual promotion process, we must , too impulsive, but counterproductive .1997 establishment of offshore market in Thailand is totally Asian financial cooperation in the absence of safety nets set up under the start, the results open the gaps in the international capital speculation, will create their own hard white ruin the results of the real economy in the East Asian financial crisis of the storm.
Second, the stronger the financial long way to go
in the following five areas:
First of all, is the system of obstacles. As many countries in China and Asia growth model is enhanced by the development of manufacturing and export capacity to maintain, therefore, which resulted in East Asian countries to external shocks is very fragile, so do not fully optimize the industrial structure and adjustment of the case is completed, eager to promote the Asian dollar or and market-oriented exchange rate of RMB capital account opening, are very dangerous and unrealistic ideas. which gives the new Asian and stronger financial cooperation model (rather than just to prevent the crisis), and the construction of Shanghai international financial services brought to carry out institutional barriers. coupled with our lack of international business to ensure the healthy development of the required set of sophisticated legal, accounting, regulatory and tax systems, in order to create their own play with, like London, New York, Singapore and Hong Kong as an international financial center, we need to go a long way to go.
Second, market discipline. since Asian countries are bank-dominated financial system, China's financial system reform and development has started late So, the world's financial institutions business will heavily concentrated in the traditional credit business, so, although we have not been in this crisis, as European and American banks as the fatal blow, but we can not afford big but not strong weakness as fully open to U.S. and European markets after the shock brought to us. In addition, in Asia, particularly China's capital market is rather simplistic, the investment market, the lack of cultural and financial products can easily lead to a pattern of chase sell into a market. It is also very important factor in favor of stronger financial one. Recently, the Obama administration and many European and American scholars are calling for: Asia to be more open to their own country's financial business and financial markets to ensure financial institutions in Europe and the United States to the competitiveness of the benefits of globalization are shared, otherwise only from the opening of the East Asian commodity markets in Europe and America to play their competitive advantage from globalization industry brought about by the wealth effect, it is times the U.S. financial crisis is largely due to the misuse of financial innovation. The Chinese factor restricting the internationalization of RMB is precisely our lack of financial innovation. This has sovereignty over the Fund's investment from our poor performance and foreign exchange management in enterprises reports of loss is evident. Of course, we focus on talent team building, we must also take preventive measures. draw the United States vulnerable to the incentive mechanism of lessons learned, establishment of the Shanghai international financial center as soon as strengthen and expand the need healthy and vibrant talent management system. in manpower training and exchange of this point, a great room for cooperation in Asia, but also the future to develop new model of cooperation in the financial aspect can not be ignored.
Fourth, culture constraints. This is shown in the U.S. mass consumption Yu Wang contributed to the process output on the dollar. In essence, the United States has long been the financial innovation to break the constraints of consumer purchasing power, to support the U.S. trade deficit pattern. In the future, how to accept Asia not used are not good at their trade deficit (or even contrary to our culture of thrift) structure, the output sub-yuan RMB or which does not lead to establishment of the country's financial system and economic development factors of instability,Bailey UGG boots, which is we need to explore problem. It brings us to change consumer attitudes, the establishment of the new consumer culture, values has never been challenged. In addition, the U.S. dollar strengthened emphasis on financial innovation led to the monetary system, a large number of foreign investment even in today's turmoil in U.S. financial system disturbing pattern, and still choose to hold U.S. Treasury bonds, causing the dollar index add significant value. and more emphasis on Asian countries, financial regulation, by controlling the financial risk, and even suppression of financial innovation (management of exchange rates and interest rates affect financial asset prices The key indicators), to ensure their access to physical sectors of the economy and the high cost of funding the production and export earnings. Therefore, the future construction of Shanghai international financial center when the process encountered a setback, we are passively Close This produces high-risk 金融 innovation environment, or whether to strengthen our system building to improve our Yingdui 风险 ability and that is whether the relationship between China and the Asian Zuojiangjinrong, enhance their core competitiveness of the important factors. < br> Fifth, the growth pattern of the constraints. Today, the leading reason why the U.S. monetary system in a crisis can also demonstrate its strength, a key element of the core competitiveness of the United States essentially does not appear shaken. The United States remains in its world-class brand, technology, and superior standard-setting and research and development capabilities, not even a hit in financial risk management capability (the U.S. financial crisis is due to the formation of the abuse of financial innovation, financial institutions, the results of the deterioration of moral hazard) to attract the international capital market does not appear to bring their feet polling status oversold dollar (U.S. printing of the initiative does not change the liquidity panic in the dollar in the If Asia, especially China can not speed up the upgrading of industrial structure and change, fixed investment, export dependence (particularly China, is still at the low end of the processing trade), and job security remains the objective goal is to maintain Asia and China in economic growth and social harmony can not get rid of New York and London as the world's international financial center it is a mature operation mechanism, although the global financial crisis has exposed flaws that many of them, but that the accumulation of decades of valuable experience that they deserve good we need to reflect on and learn. We should not just be satisfied with Here, we feel even more critical is to learn to use their Asian dollar or the renminbi become an important platform for international currency) should possess the financial resources to achieve effective allocation of the six basic functions, in a word order to establish a reasonable level of financial assets is the discovery mechanism (price discovery). For example, the RMB exchange rate market interest rate or how to accelerate and strengthen China's ability to relate to the necessary conditions for its own financial.
followed to gradually establish a RMB or sub-element of external trade and investment network. This requires us to further expand the yuan (or sub-element) output channels. If you do not meet the RMB assets (or the Asian dollar assets) diversified market, it is impossible to use or sub-yuan RMB to bring lower transaction costs and overseas investors, the convenience (mobility support functions). In this sense, the Asian bond market and the Shanghai International Financial Center's mission can not be ignored.
third, by strengthening The government is starting the reasonably expected economic fundamentals of the formation, in order to achieve RMB Yuan investment and financing activities or sub-high efficiency operation (information disclosure function). Otherwise, the information is excellent opportunity. This gives investors than the preferential tax policies are more important!
Fifth, establish a healthy and active RMB or Asian dollar investment and financing system of governance. This is America, this crisis has brought us the opposite of one of the largest education. how to improve our regulatory and legal system to fully exploit the market participants in each other's governance and restraint mechanisms, benefits and risks of making match match the performance and reward and punishment in order to ensure fair and effective financial resources configuration, but also we need to take seriously (corporate governance function). If the lack of such a system environment, it is impossible to ensure good corporate and investment team in this market full of healthy and sustainable investment and financing business.
Sixth, Asia and strengthen their financial participation will give the Asian financial market investment and financing activities of the various body can actually be brought about by China's economic development value of expanding the benefits of wealth. Otherwise, the value of wealth created out of the real economy, it may result in a huge bubble and crisis, weakening confidence in the Asian and stronger and the pace of financial (value creation function). In this respect, many lessons learned in Asia. The Japanese financial bubble and the East Asia crisis Let us remember the financial crisis so far.
Finally, I would like to emphasize that, in the construction of Shanghai international financial center, and East Asian countries and regions, we have a lot of space and financial cooperation, for example, the establishment of government-funded by the East Asian countries posed by the Asian foreign exchange reserves mutual funds, as a major Shanghai international financial center, source of liquidity; dollars to carry out offshore operations, the introduction of the Asian bond market, the formation of dollars in offshore markets and healthy competition pattern, so as to achieve wealth and improve the U.S. non-dollar wealth management efficiency. In addition, the internationalization of RMB, the current construction of Shanghai international financial center and the real economy should be tied tightly around the central goal of achieving the shipping sector entities such as the development process needed to RMB and insurance business, which made the process of wealth creation financial services background (the so-called connection between the second and tertiary industries of financial services to 2.5); and out of Hong Kong, China should be the original , to focus on meeting the business and personal wealth creation arising from the process of close (version 3.0 financial services). Obviously, Hong Kong, Chinese Taipei, Tokyo, Singapore and Shanghai, but also far from Chicago and New York as different levels of division of labor, but the level difference. Therefore, there is no mutual the pattern of vicious competition. For example, Hong Kong should be given to the financial industry in Shanghai manufacturing services to the development of space, and set the goal of their own financial crisis in the context of efforts to develop risk management, wealth creation and high-end financial services. At the same time, it should make us feel so true partners, the new model will give us financial cooperation will bring more win-win results, rather than simply part of stay in out of the benefits of a crisis on the country (the latter easily lead to micro-level : Wen Wei Po (Shanghai)
imagine. IMF's status, China is most important is to get European support. greater efficacy of emerging economies. and more Chinese scholars are attending the clear understanding that the global financial crisis continues to spread in the background, China must actively participate in the international financial order in the reconstruction process, continue to deepen the financial system reform, accelerate the pace of financial innovation.
as a national strategy to promote Shanghai With the evolution of economic globalization, China is to seek a place on the global financial markets, and promote the internationalization of RMB is an important step.
After the financial crisis, which has become very topical issues, include consideration of our strategic decisions. objective point of view, it will help the Chinese get rid of hh dollar foreign exchange reserves, even without considering the problem of low yield U.S. Treasury bonds, because these assets are held in dollars, once the dollar, China's foreign exchange reserves will suffer huge capital losses. to promote international monetary system reform, contribute to improving the global allocation of resources to promote internationalization of the RMB settlement.
promote the internationalization of RMB, and Shanghai will be the Joey German Research Foundation, believes that free convertibility of the yuan, the Shanghai can be a truly international financial center. Currently, the state has made it clear to the first batch of yuan and Shanghai, as a pilot cross-border settlement of the city. In his view, this is to promote international financial center, Shanghai is facing many institutional barriers, and even the need to overcome the inherent countries in order to develop their own financial, finally make their economy is in recession. OF: Fan Liping