JIC recently held two JIC Investment Workshops that dealt with “PPP: Investment and Development” and “China’s Financial Leasing ABS: Change and Outlook.” The workshops were held in mid-September, drawing wide attention from the industry.
JIC Investment Workshop –“PPP: Investment and Development” was hosted by China Investment Consulting on Sep. 12, 2015 in Beijing. JIC Chairman Zhong Jian’an and MOF Finance Inspector, Liu Jian, both attended the event and addressed the workshop. The workshop looked into trends and investment opportunities in PPP from a professional and forward-looking perspective. It was also able to provide insight and guidance concerning the next steps forward.
In his speech, Zhong Jian’an stressed the importance of PPP as a major reform initiative launched by the State Council. It will be a key part of the country’s growth, reform, restructuring, benefiting people and risk mitigation plans. In recent years, the concept of PPP has been actively put into practice by local governments and fiscal authorities as a result of strong efforts from the MOF. With private capital pouring in, a number of PPP projects are already on the go. China Investment Consulting, a JIC subsidiary, is working with government agencies and investors to help facilitate this process.
Liu Jian discussed four key issues in promoting the PPP model. First, PPP is needed for macroeconomic adjustments and control. It is also required to help bolster regulations and innovation within public services. Second, with PPP, governments are prevented from deciding things in an autocratic manner; instead, they must listen to stakeholders. Being recognized by the market is key to the implementation of any PPP project. Third, PPP projects are financed through equity and debt financing schemes. Fourth, the required legislation, administrative governance and transparency for project management have been recognized as being fundamental to successful PPP projects.
Jiao Xiaoping, vice director of the MOF PPP Office & PPP Center, gave a keynote speech on how to promote PPP projects in an orderly manner. He made it clear that the MOF is ready to create a unified, well-regulated and transparent PPP market. This will require improvements in the regulatory systems, institutions and mechanisms that are central to promoting demonstration projects. Other guest speakers included Beijing Capital General Manager Liu Yongzheng, CCB Pension General Manager Feng Liying and Gezhouba Group General Manager He Jiansheng. The workshop also ran a roundtable discussion on two hot issues: “how to implement a PPP project” and “PPP-related investment opportunities and key issues”.
Sponsored by JIC and the Shanghai Stock Exchange, the JIC Investment Workshop –“China’s Financial Leasing ABS: Change and Outlook” was also hosted by JIC Leasing on Sep. 11, 2015 in Shanghai. JIC Vice President Huang Jianjun attended the event and addressed the workshop. This workshop was held against the backdrop of a series of policy incentives. These policy incentives are aimed at addressing financing issues and promoting change, development and innovation within the financial leasing sector.
During his speech, Huang Jianjun said China’s economic and financial reforms have picked-up pace in the New Normal era. This era has been marked by deregulation and innovation. A range of reform initiatives have now been announced, indicating a shift in financial innovation from theory to practice. Here, asset-backed securities (ABS) are viewed as being an essential part of the process. The financial leasing sector has long been crippled by inadequate access to capital and inflexible financing mechanisms. Leasing ABS will open a new door to capital for leasing companies. It will also help to revitalize lease assets and bolster the real economy.
According to Huang Jianjun, JIC remains committed to supporting and guiding the efforts of its member companies as they push ahead with financial innovation and participate in a multi-tier capital market. In August, JIC Leasing launched its first asset-based security product. As a state-owned investment group, JIC will continue to play an active role in financial innovation. It will be able to provide very strong support to the real economy.
The workshop also held roundtable discussions on two issues: “ABS offerings in financial leasing” and “ABS-related knowledge sharing.” These discussions resulted in forward-looking, insightful and in-depth dialogues. JIC will work with its partners to help foster financial innovation, boost the health of the financial leasing sector and contribute to better collaboration between the real economy and the financial sector.