World / Europe

Increased Asia-Europe Cooperation Will Counter Low Growth

By Zhang Chunyan and Wang Mingjie in London ( Updated: 2015-11-10 09:35

Increasing Asia-Europe financial cooperation will have strategic significance in preventing the world economy from falling into a low-growth trap, former Chinese vice premier Zeng Peiyan said on Monday.

Such cooperation will also sustain the prosperity of the two continents, Zeng said in his keynote speech at the Boao Forum for Asia Financial Cooperation Conference in London.

"Asia and Europe are complementary in the international financial system and connectivity between the two continents will be an inevitable trend," Zeng said.

Now "the financial market in Asia remains immature and needs to learn from advanced economies, which are awash with capital, while the financial services sector in Europe is also eager to tap overseas markets and needs external liquidity to address its debt crisis," said he.

In this sense, he said, "mutually beneficial and win-win financial cooperation between Asia and Europe promises enormous potential."

The Financial Cooperation Conference is a post-crisis serial conference organized by the Boao Forum for Asia that aims to facilitate both regional and inter-regional financial cooperation. It has been held many times around the world.

Zeng pointed out that Asia and Europe can cooperate in many financial areas, including:

- setting up financial institutions such as commercial banks, insurance and financial companies, as well as clearing houses in each other's continent

- connecting stock and bond markets

- strengthening bilateral and multilateral currency swaps as well as local currency settlement and direct trading

- individually enabling capital account and currency convertibility

- expanding cooperation in green finance and investment in each other's infrastructure development banks

- deepening cooperation between credit agencies and creating a credit rating system in line with the financial market of the 21st century

- maintaining communication and coordination among major Asian and European economies regarding financial and monetary policies.

Zeng also added that the 5th Plenum of the CPC Central Committee heralds deeper and wider reforms in China, including the financial sector, which will create more Chinese opportunities for the world and add impetus to Asia-Europe financial cooperation.

The conference which opened in London on Monday, convenes more than 400 government, business and academic leaders from 22 Asian and European countries.

Participants shared insights on a number of issues, including structural reform for Asia-Europe financial cooperation, global financial governance, diversification of the international monetary system as well as opportunities from the One Belt, One Road initiative and Asia-Europe financial cooperation.

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