At the 22nd China International Finance Forum held in Shanghai on December 19-20, themed "Building an Intelligent Financial Ecosystem in the Digital Economy Era," Li Qin, Director of the Fixed Income Department at Soochow Securities Hong Kong Financial Holdings, delivered a keynote speech.
Li Qin noted that while China has achieved free convertibility under current accounts and initiated capital account pilot programs with the establishment of the Shanghai Free Trade Zone in 2014, the further development of offshore finance and the offshore economy now demands greater openness in capital accounts.
In his view, free trade offshore bonds represent a groundbreaking pilot initiative in offshore finance. He explained that compared to traditional products like dim sum bonds or USD-denominated bonds, free trade offshore bonds offer more advantages for Chinese enterprises expanding globally. "The investor base and infrastructure are more China-friendly. Although transactions occur offshore, China has a robust support system for outbound ventures, including corporate services, forex management, and legal assistance. Leveraging domestic resources to facilitate overseas expansion could drive the future growth of free trade offshore bonds, marking a significant step forward in China's offshore finance."
Li Qin also emphasized the need for regional financial support alongside legal and regulatory frameworks for offshore finance. He highlighted the Lujiazui Financial District in Shanghai as a hub of financial resources, which has evolved from serving inbound foreign investments in the 1990s to now supporting outbound Chinese enterprises. He described it as the "core financial hub" that will play an increasingly vital role in China's offshore finance development.
The forum's discussions underscored the potential of free trade offshore bonds to bridge domestic and international markets while fostering China's offshore financial ecosystem.
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