But more than that, it has the potential to help make Chongqing the beating heart of the Western Region. Let me suggest four areas of financial collaboration in the next phase of CCI. 2/5  BIS central bankers' speeches  first, unlocking private sector financing for infrastructure projects; second, expanding the role of capital markets in financing growth; third, developing risk management solutions to support investment; and fourth, strengthening financial capabilities and mutual learning. Unlocking private sector financing for infrastructure projects First, private sector financing for infrastructure projects, especially in the context of the Belt and Road Initiative. The CCI can serve as a key priority demonstration project to operationalise the Belt and Road Initiative. The Belt and Road Initiative is breath-taking in its strategic vision. At one level, it is about promoting economic growth in the countries of Asia through infrastructure development. The Asian Development Bank estimates that developing Asian countries will need to invest $ trillion annually in infrastructure until 2030 to maintain their growth momentum. But at a deeper level, the Belt and Road Initiative is about bringing together the countries of Asia through greater connectivity – deeper links of transport and communications, stronger flows of trade and investment, greater movement of people and ideas. The Belt and Road’s potential scope for connectivity is perhaps unmatched in human history. As an international financial centre in the heart of Asia, Singapore can play a useful role in financing and advancing Belt and Road projects, particularly in Southeast Asia.

Between 2000 and 2016, China-Singapore trade has increased seven times, to more than USD 80 billion. Singapore is the largest foreign direct investor in China. Since 2010, Singapore’s direct investment into China has grown by an average 13.4% each year. Chinese financial institutions have significantly increased their presence in Singapore in recent years. Bank of China and ICBC have expanded considerably in Singapore over the past 4 years. They have set up in Singapore their regional centres– for commodities, trade financing, RMB trading, private banking, and debt capital markets. Other Chinese banks have established in Singapore their first international operations. Earlier this year, the Shanghai Pudong Development Bank opened in Singapore its first overseas branch outside of China and Hong Kong. 1/5  BIS central bankers' speeches  China Construction Bank opened its infrastructure services and private banking centres in Singapore. China Merchants Bank established in Singapore its only international private banking centre outside of China and Hong Kong. This vibrant economic connection between our two countries rests on the bedrock of a strong bilateral relationship that has grown and matured over the years. When President Xi Jinping and Prime Minister Lee Hsien Loong met in Hamburg in July this year on the side of the G20 meeting, they reaffirmed our close ties and discussed how China and Singapore could strengthen cross-border collaboration. In the past few months, various leaders of our two countries have met, always with the same purpose: to broaden relations, build connectivity, boost mutual prosperity.