Yi Gang: Welcome address - Tenth Lujiazui Forum
Welcome address by Mr Yi Gang, Governor of the People's Bank of China, at the Tenth Lujiazui
Forum, Shanghai, 14 June 2018.
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Secretary Li Qiang,
Vice Chairman Zhou Xiaochuan,
Distinguished guests,
Ladies and gentlemen,
Good morning!
It is a great pleasure to join friends both old and new at the 10th Lujiazui Forum, which is jointly
organized by the People's Bank of China (PBC), China Banking and Insurance Regulatory
Commission (CBIRC), China Securities Regulatory Commission (CSRC) and Shanghai
Municipal People's Government. On behalf of the organizers, I would like to extend a warm
welcome to you all!
This year marks the 40th anniversary of China's reform and opening-up. The development of
socialism with Chinese characteristics has entered a new era, and China's economy has been
transitioning from a phase of rapid growth to a stage of high-quality development. The city of
Shanghai is an international financial center with a rich history of financial sector development
and a full-fledged, sound financial market system, and has been a pioneer in China's financial
reform and opening-up. The development as international financial center is an important mission
that the Party Central Committee and State Council has entrusted to Shanghai, based on the
overall arrangements of China's reform, opening-up and modernization. In recent years,
Shanghai has made steady progress in a series of financial pilot programs including the reform
measures adopted in the pilot free trade zone, cross-border use of RMB, Shanghai-Hong Kong
Stock Connect, Bond Connect, and crude oil futures, and has, in these valuable experiments,
accumulated replicable and expandable experiences for financial reform and opening-up in the
country. Therefore, the theme of this forum as "Shanghai's Development towards an International
Financial Center in the New Era" is of great significance.
On April 10 this year, Secretary-General Xi Jinping pointed out at the Boao Forum for Asia that
China will continue its fundamental national policy of opening-up, and that the door of opening-up
will never shut and will only open wider. Meanwhile, he also stated that China will significantly
broaden its market access, including in the financial sector. The PBC has attached importance
to and supported the development of Shanghai as an international financial center. Going
forward, the PBC will implement the decisions and arrangements of the CPC Central Committee
and State Council, take effective measures to further support the pilot programs of financial
reform and opening-up in Shanghai. First, to facilitate the RMB internationalization, we
will support Shanghai in innovating and carrying out pilot programs in cross-border RMB
business and products following the market-driven principle. We will give full play to the RMB in
pricing and settlement of commodities. Besides, Shanghai can tap its advantages as an
international financial center to provide financing support for the Belt and Road Initiative. Second,
in the context of promoting RMB capital account convertibility, we will support Shanghai in the
pilot reforms of foreign exchange management, increasing the functions of free trade accounts in
the Shanghai Pilot Free Trade Zone, and promoting convenience in capital account management
and convertibility of capital account. Third, we will support Shanghai's efforts to further improve
the financial market and financial services. As an international financial center, Shanghai has
been playing an important role in various financial markets, including the stock, bond, money and
foreign exchange markets. We will make more efforts in infrastructure development to expand
the scope and depth of market, make trading more convenient and efficient, improve the legal
framework, market environment, custody and settlement of transactions, in an effort to increase
the appeal of the financial markets in Shanghai and promote its status as an international
financial center and a hub of financial markets. Moreover, Shanghai has huge potential in
development of financial services, given its advantage as a talent pool, its appeals to
foreignfunded institutions in payment and settlement businesses including third-party payment, bank
card services and rating businesses, and vast space for business development. Fourth, going
forward, the financial sector opening will follow the principle of national treatment to gradually lift
caps on foreign ownership and limits on business licenses. Given Shanghai's unique competitive
advantages, many foreign banks, securities companies, insurance companies, and investment
banks have chosen Shanghai as a focal point in their plans for global business development.
Therefore, Shanghai will be the highlight of both China and the world in the development of
financial institutions. The fifth is that Shanghai also has considerable potential and advantages in
leading the development of financial technologies. Financial institutions and relevant companies
in Shanghai are forerunners in the country in R&D and innovation of financial technologies and
we expect they will continue to do so in the future.
Shanghai's development as an international financial center calls for concerted efforts of all
parties. The PBC will continue to support Shanghai to focus on institutional innovation, to open up
its financial sector, to build an internationally competitive financial market, and to bring the open
economy to a higher level, all for the purpose of providing better services to the real sector and
promoting trade and investment facilitation.
To conclude, I wish the forum a crowning success!
Thank you!