Huang Zhiling, chief economist of China Construction Bank (CCB) delivered a speech during the opening ceremony of The Third Economic and Financial Forum of BRICS Countries held in Beijing, December 15, 2014.
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Good morning ladies and gentlemen,
On July 15, BRICS Development Bank and the Contingent Reserve Arrangement was officially set up at the sixth meeting of BRICS leaders held in Fortaleza, Brazil, marking a significant step towards financial cooperation among BRICS. As a representative of a co-organizer of this forum, and on behalf of China Construction Bank, I would like to extend my congratulations on the great success of this event.
In the 21st century, especially since the 2008 financial crisis, BRICS have achieved remarkable economic growth and are playing increasingly important roles in the global market. By the end of 2013, the population of the BRICS nations accounted for 42.6% of the world's total and their economic output accounted for 21.25% of world's total. They contributed over 50% of the world's economic growth, and accounted for more than 50% of the world's foreign exchange reserves and cross-border trades. BRICS have become an important new driving force for global economic growth, and therefore facilitating the development of BRICS will represent the biggest contribution to global economic growth.
Financial collaboration is a natural product of the deepening of economic and trade relations between BRICS and it will, in turn, facilitate the economic and trade development of these nations. Trading between China and other BRICS countries has increased rapidly in the past ten years, resulting in closer trading relationships. In 2013, the import and export trade between China and other BRICS countries amounted to USD 310.1 billion, and China has become the biggest trading partner of India, Brazil, South Africa and Russia. We are glad to witness the establishment of the BRICS Development Bank and the Contingent Reserve Arrangement this year, which represents a significant milestone with far-reaching impact on the financial collaboration among BRICS. The purpose of setting up BRICS Development Bank and the Contingent Reserve Arrangement is to support the construction of infrastructure in the BRICS nations, deepen multilateral economic and trade cooperation, and facilitate the economic and social development of these nations. It will not only be beneficial to the financial stability and security of BRICS, but will also help enhance the status of and give a voice to developing countries in the global governance system and international monetary and financial system. The all-round cooperation between the BRICS nations has also opened up enormous room for development for the banking sector. The BRICS banking industry players should fully assume their role in serving the economy and taking advantage of the opportunities presented. They should base their development on the economic and trade cooperation between the five countries and rely on policy-support projects such as the establishment of BRICS Development Bank. And they should facilitate comprehensive cooperation and exchange between the BRICS countries by pursuing deeper collaboration and innovation in areas such as international settlement, project financing and trade financing. As reflected in the theme of this forum, "Leading development with innovation, promoting cooperation with complementary efforts", BRICS can fully leverage each other's relative advantages, identify opportunities in economic and trade cooperation, and explore new areas of development for the industry, in order to seek mutual development through joint efforts.
This year marks the 60th anniversary of China Construction Bank. After decades in business, CCB has evolved from a bank specializing in processing infrastructure funding into a world-renowned large-scale integrated commercial banking corporation providing comprehensive commercial banking products and services to our clients. China Construction Bank currently has total assets of over RMB 16 trillion and nearly 300 million corporate and individual clients. The Bank was awarded a second overall ranking on Forbes List of Top 2000 global companies based on the four benchmarks of sales, profit, assets and market value. Infrastructure financing has been an area of traditional strength for CCB. The Bank has supported infrastructure projects including the Three Gorges Project, the South-to North Water Diversion Project, the West-East Natural Gas Transmission Project, as well as the construction of electric grids, highways, high-speed railways and major ports. By the end of June 2014, the Bank's loan balance for infrastructure amounted to nearly USD 400 billion. Over the years, CCB has persisted in pursuing innovation in products, processes, technology and services, striving to establish an integrated financial service platform to provide multi-currency global solutions to our domestic and overseas clients. CCB has become a major driving force behind China's foreign economic and trade cooperation with other countries.
CCB has been actively pushing forward its international development strategy in recent years. It has steadily expanded its overseas businesses and network, broadened its service channels, enriched its financial product mix, and enhanced its global service capacity and competitiveness in the international market. CCB currently has 21 tier-one overseas entities covering 18 countries and regions, with total assets approaching USD 180 billion. CCB persists in following its operating strategy of "closely following its customers and accelerating localisation". On the one hand, CCB leverages its domestic and overseas network to provide comprehensive financial services to Chinese enterprises going global and overseas enterprises coming to China. On the other hand, CCB is actively expanding its local client pool to boost the local economy. CCB has always viewed emerging markets as a strategic focus of its overseas development, attaching great importance to developing financial collaboration and business relationships with other BRICS countries. CCB has already set up a branch in Johannesburg and a wholly-owned subsidiary in Moscow, in addition to acquiring a 72% stake in Brazilian bank BIC and building up agency relationships with 152 banks in the BRICS.
Going forward, adhering to the principles of pursuing "cooperation, mutual benefit and win-win situations", CCB will keep on strengthening its interaction and cooperation with financial industry players in BRICS to establish branches and expand its business. Firstly, CCB will step up its efforts to set up branches in the BRICS to capitalize on the bridging and bonding function of its overseas entities. Secondly, by strengthening cooperation with BRICS Development Bank and leveraging its own experience and advantages in infrastructure construction, CCB will actively push forward collaboration with BRICS in infrastructure projects. Thirdly, CCB will strengthen interaction with financial institutions in BRICS to pursue mutual benefit and collaboration in innovation, thereby jointly paving the way for the success of deepening cooperation in economic development, trading and investment among BRICS, and contributing to the all-round economic and financial development of BRICS. Lastly, CCB will continue to fully support the development of cross-border RMB settlement business among BRICS, in a bid to provide quality and efficient cross-border RMB services to corporates and individuals investing and operating in BRICS.
I sincerely hope that CCB will receive the continued support from all sectors in the future. I look forward to sharing with all of you the promising future of deeper economic, financial and investment cooperation among the BRICS nations.
Thank you!