Big money sought to con­nect Asia-Pa­cific

China Daily (USA) - - CHINA - By CHEN YINGQUN in Yangzhou, Jiangsu cheny­ingqun@chi­nadaily.

Joint ef­forts are needed by Asia-Pa­cific coun­tries to cre­ate in­no­va­tive fi­nanc­ing mech­a­nisms to de­velop in­fra­struc­ture, ac­cord­ing to an of­fi­cial at a con­nec­tiv­ity sym­po­sium in Yangzhou, Jiangsu province, on Tues­day.

Huang Mengfu, hon­orary chair­man of the China Na­tional Com­mit­tee for Pa­cific Eco­nomic Co­op­er­a­tion, said at the sym­po­sium — the In­ter­na­tional Sym­po­sium: Con­nect­ing the Con­nec­tiv­i­ties in Asia Pa­cific — that in 15 to 20 years, global de­mand for in­fra­struc­ture in­vest­ment will reach $50 tril­lion.

Ac­cord­ing to the World Eco­nomic Fo­rum, an­nual de­mand glob­ally is cur­rently $3.7 tril­lion, but as there is a $1 tril­lion short­age of in­vest­ment, ac­tual in­vest­ment is about $2.7 tril­lion, Huang said.

“No sin­gle econ­omy or any in­ter­na­tional or­ga­ni­za­tion can af­ford to cover such a huge mar­gin. I be­lieve we es­pe­cially need to mo­bi­lize the par­tic­i­pa­tion of pri­vate cap­i­tal in con­nec­tiv­ity, and we should make full use of public-pri­vate part­ner­ships,” Huang told rep­re­sen­ta­tives from more than 20 Asia-Pa­cific coun­tries and re­gions at the event.

Zhou Qiangwu, head of the Min­istry of Fi­nance’s In­ter­na­tional Eco­nom­ics and Fi­nance In­sti­tute, said con­nec­tiv­ity in the Asia-Pa­cific re­gion cur­rently lacks cap­i­tal, as well as mech­a­nisms to max­i­mize its use.

“It may take a long time for in­vestors to make a profit by in­vest­ing in in­fra­struc­ture projects in the con­nec­tiv­ity area, and some­times there are even po­lit­i­cal and tech­ni­cal risks. As a re­sult, pri­vate cap­i­tal is re­luc­tant to in­vest in it,” he said.

How­ever, there is cur­rently about $35 tril­lion in idle pri­vate cap­i­tal in the Asia-Pa­cific re­gion, Zhou said. Mul­ti­lat­eral devel­op­ment or­ga­ni­za­tions could bring in more pri­vate cap­i­tal and help re­duce risks through creative fi­nanc­ing tools, Zhou said.

Huang, the chair­man, added that the Asia In­fra­struc­ture In­vest­ment Bank could help chan­nel fi­nan­cial sup­port to in­fra­struc­ture con­struc­tion.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.