Robert Middot, the Nobel Prize winner; Engel calls China to strengthen intellectual property protection and contract rights protection, and enhance foreign business confidence in investing in China.(Provided by Lujiazui Administration)
Engel pointed out that China Finance's biggest risk is currently on debt.He believes that Chinese officials should reduce the debt rates of state -owned enterprises and local governments, and suggest that China has introduced more foreign investment as a means to stimulate the economy at the occasion of economic growth.
The Nobel Prize winner of Economics Robert Middot; Engel believes that when China reduce the debt of state -owned enterprises and local governments, it should establish a confidence in foreign investment in China to stimulate domestic economic growth that has slowed due to debt management.
Robert Engle, at the sidelines of the Global Financial Risk Management Meeting of Lujiazui Financial City yesterday, pointed out that the biggest risk that China Finance is currently facing is debt.He said that although the Chinese government has taken measures to reduce debt, it has limited results so far, especially at the time of economic slowdown, the risks brought by debt are even more prominent.
He warned: Once people lose confidence in economic development, they will sell stocks, bonds, and real estate, which will be the starting point of the collapse of economic confidence.
Engel delivered a keynote speech at the meeting, which explained his views on China's financial risks that after the global financial crisis in 2008, effective supervision caused the American systemic risks to greatly decline.rise rapidly.
He believes that Chinese officials should reduce the debt rate of state -owned enterprises and local governments, but this process must be implemented slowly to reduce market panic.In order to prevent resolving financial risks, China has been deleveraging in recent years, but this has also produced many side effects. Many companies have therefore tension in the capital chain, and China's economic growth has also been under pressure for many years.
Engel suggested that when China slows down, China has introduced more foreign investment as a means to stimulate the economy.He said: Without debt to stimulate the economy, growth will slow down. If you want to fill this gap, you can use foreign investment, but foreign capital must be fully confident in China HelloP; Hellip; this includes protecting intellectual property rights and contract rights.
He explained that when foreign companies signed a contract with Chinese institutions, the contract can write a way to resolve disputes and arbitration places, such as using more sound independent arbitrators such as London, Singapore, Tokyo and other legal systems to resolve disputes.
This will make foreign investment more at ease and let them know that they can get legal protection when necessary.This also includes not to change it often. When you say it can be imported verbally, but in fact, you can't do so.
The Sino -US trade war was deadlocked. The two countries caused opposition due to trade disputes, which led to the first time that the Asia -Pacific Economic Cooperation Organization (APEC) peaks have just ended for the first time in more than 20 years.
Engels suggested that China restarts negotiations with trade partners to reduce trade barriers. He also believes that there is still a solution for the Sino -US trade war, and the business community can play a role.
He said that the Trump administration faced tremendous pressure from the US business community, and the influence of the business community on the Chinese authorities was also important, so it could promote the leader to find a solution for the upgrading trade dispute.
On the other hand, Wang Qinghua, a specially -appointed professor of Fudan University and former Secretary of the Discipline Inspection Commission of the People's Bank of China, pointed out in his speech that the debt of the Chinese government's financing platform has risen significantly, and many places are hidden in debt, which constitutes a risk point for Chinese finance.
The China Financial Stability Report (2018) issued by the People's Bank of China earlier this month also warned that local governments still exist in violation of laws and regulations, and the development of new hidden debt is worthy of attention.
The report pointed out that local government financing demand is strong. Under the circumstances of insufficient fiscal and financial resources, it is necessary to increase infrastructure construction to drive economic growth. It can only meet the requirements through expanding liabilities. Financial institutions have government credit hallucinations.The two aspects of financing and supply and demand have made local government debt control more difficult.
