Written by Li Yizhi / Translated by Xu Zhiliang

Guangxi Beibu Gulf Economic Zone Industry-Finance Integration Matchmaking Conference:To Make Capital Available to Competitive Projects

Written by Li Yizhi / Translated by Xu Zhiliang

Guangxi Beibu Gulf Economic Zone Industry-Finance Integration Matchmaking Conference (Phase 1),titled “Serving Economic Entities, Seeking Mutual Benefits”, was held by Beibu Gulf Economic Zone &Cooperation with ASEAN Of fi ce (BGEZCWAO) of Guangxi Zhuang Autonomous Region in Nanning, China on July 25,2017. The conference, seen as an important initiative proposed by BGEZCWAO of pursuing industry-finance integration and maritime economy, was aimed at not only presenting the current conditions and financial demands of local major industries to cities and industrial parks in Beibu Gulf Economic Zone (BGEZ) but also helping various financial institutions preliminarily learn about their target projects.

BGEZCWAO as the sponsor expects that channels concerning industry- fi nance integration will form a permanent mechanism in BGEZ through this conference.

Vice Governor of Guangxi Zhuang Autonomous Region Zhang Xiaoqin has high expectations for BGEZs industryf inance integration; moreover, some participating guests highly appreciate this conference, and hold that industry-finance integration will de fi nitely facilitate the sound development of capital services in BGEZ.

A sustained, ef fi cient matchmaking mechanism in progress

Over 200 representatives from local authorities, industrial parks, enterprises, financial institutions, and media organizations attended the conference, during which BGEZ presented 16 key industrial parks, seven 100-billion-yuan key industries and 61 major projects — with a total planned fi nancing of RMB 62.2 billion yuan — to fi nancial institutions and investment organizations at the autonomous region level.After the presentation, 15 financial institutions and seven investment organizations present at the conference conducted face-to-face exchanges with their target industrial parks or enterprises.

To ensure a smooth integration of industries and finance,BGEZCWAO has successively established the corresponding liaison mechanisms — including signingThe FinancialCooperation Agreement on Supporting Beibu Gulf Economic Zone’s Opening-up and Developmentwith Bank of China —with various fi nancial institutions and investment organizations inside and outside Guangxi. As planned,The Strategic MoU on Development Finance for Guangxi’s Belt and Road ConstructionandBeibu Gulf Economic Zone Comprehensive Strategic Cooperation Agreementwill be signed with State Development Bank and China Communications Construction(Group) Co., Ltd., respectively.

Besides, such a conference is set to be held per month. To make the theme “Serving Economic Entities, Seeking Mutual Benefits” achievable, continuous efforts will be made to innovate forms of activities and offer customized services or policies to all participants.

Making industry- fi nance integration serve Guangxi’s“Three Development Goals”

“The real economy is viewed as the foundation of finance,while fi nance is called the blood of the real economy. It is the fundamental task for fi nance to serve the real economy,” said Vice Governor Zhang Xiaoqin when addressing the conference.He highly appreciated industry- fi nance integration, and called on all parties concerned have full con fi dence in key industrial parks and projects presented by BGEZCWAO.

It is widely known that Guangxi is the only province that is linked with ASEAN by land and sea, and that Nanning — the provincial capital of Guangxi — is designated as the sole venue for CAEXPO. Guangxi’s three major development goals,set by Chinese President Xi Jinping, are to build a crucial gateway that makes the Belt and Road organically linked, a new strategic fulcrum for the opening-up and development of China’s southwestern and south-central regions, as well as an international great access to ASEAN, respectively.

Zhang hopes that industry-finance integration will contribute to the construction of the Belt and Road, Chongqing-Guangxi-Singapore Southward Passageway and China-ASEAN Port Cities Cooperation Network, and strengthen the exchanges on international industrial-capacity cooperation.

A specially-invited guest making remarks at Guangxi Beibu Gulf Economic Zone Industry-Finance Integration Conference

Fostering a capital service ecosystem through engagement between enterprises and investors

At present, many industrial parks and enterprises in Guangxi are confronted with pressures caused by the industrial transformation and upgrading of industries, which relies largely on capital.

In the past, industrial parks and enterprises in BGEZ raised funds from financial institutions like banks in the form of bonds or acquired capital from venture capitals and investment institutions by means of equity fi nancing.

From a more macroscopical perspective, there is a shortage of a complete capital service ecosystem in BGEZ and Guangxi as a whole. Given factors such as different industry perceptions and asymmetric information, fi nancial institutions take the real economy more cautiously, resulting in unsatisfied demands for credit funds, higher financing costs, and unshaped industrial layout. On the other hand,capital fails to play its role as an accelerator of industrial development, owing to the accumulated fi nancial risks.

“The conference is significant for our industrial zone in various aspects,” said one of the participating heads of Beihai Industrial Zone, “It offers us a platform for face-toface exchanges. Previously, it was very difficult for us to engage with them, because of lacking bank branches at the prefecture level. Inviting so many financial institutions to the conference has facilitated the investment cooperation between us.” He added that it is also a good chance to learn about not only the practices and experience of other industrial parks but also the trends and measures of rendering fi nancial services.