Theme and topics of Shanghai’s 2018 Lujiazui Forum

Source:Global Times Published: 2018/6/13 18:48:41

Global financial center

The Information Office of Shanghai Municipality held a media briefing on June 7, where deputy director of the Shanghai Financial Service Office Xie Dong introduced basic information about the Lujiazui Forum 2018, to be held on June 14-15. Lujiazui Forum was created in 2008 as a high-level global platform for influential government officials by the Shanghai Municipal People's Government and national level financial regulatory authorities. The annual event has been successfully held for the past nine years.

This year, the theme of the forum is "Shanghai's Development toward an International Financial Center in the New Era," aimed at climbing toward a higher level for Shanghai's transformation as an international financial center. They hope to make further steps into the forefront of the global financial center through brainstorming and drawing on the views of the general public to further identify the points of strength for the development of Shanghai's financial reforms and stability.

At present, the world economy is expected to continue to recover, but there are also many uncertainties. For instance, major economies' policy adjustments and their spillover effects are all up in the air, protectionism is tense and more heightened and geopolitical risks are rising.

At the moment, China is going through a financial deepening processes. What are the key tasks for future financial revolutions? How to make finance better serve the real economy and boost innovative growth? The first general assembly will focus on the new era's socialist economic ideas with Chinese characteristics and the development of Chinese finance.

It has been 10 years since the international financial crisis broke out, and the world economy is stepping back to recover. However, risks and uncertainties still exist. In the face of various profound changes such as growth momentum, the development patterns, the globalization process and the economic management system, how can the world economy achieve new sustainable growth? How should the global financial governance system be further improved?

The second general assembly will focus on the world economic growth and construction of financial governance system under economic globalization, and gather wisdom from both home and abroad to respond positively to these major issues of concern.

Financial risks

Among the risks China's economy has been faced with, financial risks are particularly prominent. For example, the Black Swan, the Gray Rhino and the Minsky Moment. "Preventing and resolving major risks" is one of China's three major combats in the next three years. To solve the difficulties and problems in this battle, the key is to deepen reforms in an all-round way. This year marks the 40th anniversary of China's reform and opening-up and also the 10th anniversary of the international community's response to the global financial crisis.

Looking back on the past, what international experience in the prevention and control of financial risks is worth learning from? Looking ahead, where is the next step for China's financial reform and opening-up? The third plenary session will focus on deepening financial reform and opening-up and also preventing and controlling financial risks and will have deep discussions.

Thanks to science and technology development of the world and the economic growth needs of China, the financial system of China is currently facing three new development opportunities: fintech, which is developing alongside the fourth industrial revolution centered on the internet; inclusive finance, which helps more people from different background to share the benefits of development; and green finance, which promotes industrial restructuring and follows the principle that "lucid water and lush mountains are invaluable."

In the face of these opportunities and challenges, how should financial institutions adjust their development strategy and business priorities? How should financial regulators put in place better mechanisms and effectively guard against risks? Plenary Session IV will focus on proactively discussing related issues such as the opportunities and challenges in fintech, inclusive finance and green finance.

China's Belt and Road initiative has become a bright spot as economic globalization faces headwinds. Promoting infrastructure development and connectivity is a core aspect of the initiative, whereas financing turns out to be a major challenge for achieving connectivity. Meanwhile, pushing forward the Belt and Road calls for more robust comprehensive service capacity of financial markets and institutions. How should financial institutions get involved? What kind of financial risks should be watched and controlled? Plenary Session V will focus on building comprehensive capacity of finance for the Belt and Road Initiative and conduct in-depth discussions.

The story is based on an article published on Touch Shanghai.

A view of the Lujiazui financial hub in Pudong New Area Photo: VCG


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