B&R Initiative witnesses strengthened financial integration

As an important pillar of the Belt and Road (B&R) Initiative, financial integration in the B&R countries has been strengthened over the past years, according to a report released Monday.

"Exploring investment and financing models, international multilateral financial institutions and commercial banks have played an innovative role in expanding the channels of diversified financing, providing stable, transparent and quality financial support for the B&R Initiative," said the report.

[File Photo: IC]

China's Ministry of Finance and its counterparts in 27 countries including Argentina, Russia, Indonesia, the UK, and Singapore have endorsed the "Guiding Principles on Financing the Development of the Belt and Road".

According to the Principles, the countries participating in the B&R Initiative support channeling of financial resources to serve the real economy of countries and regions involved, with priority given to such areas as infrastructure connectivity, trade and investment, and industrial cooperation, among others.

With a steady supply of innovative financial products, channels for financing the B&R Initiative have expanded substantially.

China has continued to open up its interbank bond market. By the end of 2018 about 200 billion yuan (about 30 billion U.S. dollars) of Panda bonds, or yuan-denominated bonds, had been issued.

The Export-Import Bank of China issued a 2 billion-yuan green bond for global investors, and the BRICS New Development Bank issued a 3 billion-yuan green bond to support the green development of the B&R Initiative.

Eleven Chinese-funded banks have set up 76 first-grade institutions in 28 B&R countries, and 50 banks from 22 B&R countries have opened 7 corporate banks, 19 branches, and 34 representative offices in China.

China has made bilateral currency swap arrangements with more than 20 B&R countries and Renminbi clearing arrangements with 7 B&R countries, and signed cooperation agreements with the financial supervision authorities of 35 B&R countries.

Elaborating on the progress, contributions and prospects of the B&R Initiative, the report was released ahead of the second Belt and Road Forum for International Cooperation to be held from April 25 to 27 in Beijing.