In early 2024, the world is looking towards a new decade of collaborative efforts under the Belt and Road Initiative. At the recent Financial Street Forum, attendees engaged in discussions about the new opportunities and challenges facing Asian financial cooperation, as well as strategies for building the Belt and Road Initiative with a focus on high quality.
During the forum, the Asia Financial Cooperation Association unveiled its “Asia Financial Outlook (2024 Report).” The report indicates that Asia’s economy is expected to maintain a strong growth trajectory, projecting a real GDP growth rate of approximately 4.5% for 2024, alongside an overall downward trend in inflation, which sets a solid foundation for the financial sector’s growth.
Yang Liyu, the Executive Vice Secretary-General of the Asia Financial Cooperation Association, noted that there are numerous opportunities across various sectors, including credit financing, investment banking, wealth management, pension insurance, cross-border business, green finance, and the digital economy. International capital is expected to continue increasing its investment in Asian assets, with both stock and bond markets on an upward trajectory.
The report further highlighted that while Asian financial markets are progressing, they still lag behind developed economies in Europe and North America. Financial stability in Asia is particularly vulnerable to shocks from Western markets. This has led to a consensus among participants on the importance of collaboration among Asian nations and regions. There have been noticeable results from Belt and Road cooperation in areas like trade and financing. However, as a new wave of technological revolution and industrial transformation unfolds, the initiative faces challenges, including the need for increased funding and enhanced financial connectivity.
Wang Zhiheng, president of the Agricultural Bank of China, emphasized the need for relevant countries and regions to intensify their financial openness, deepen market interconnectivity, and work together to overcome difficulties, resolve bottlenecks, and bridge gaps, thereby acting as lubricants and accelerators for the flow of goods, technology, and information.
To date, China has signed over 200 cooperation documents related to the Belt and Road Initiative with more than 150 countries and over 30 international organizations. The cumulative trade volume with participating countries has exceeded $22 trillion, while direct investments in these nations have surpassed $270 billion.