CIC Forum 2018 - International Industrial Cooperation & Bilateral Cross-Border Investment Summit08-11-2018
The CIC Forum 2018: International Industrial Cooperation & Bilateral Cross-Border Investment Summit was held on November 8, 2018 in Beijing. The forum was co-hosted by China Investment Corporation (CIC), China Council for Promotion of International Trade (CCPIT) and China Association for Public Companies (CAPCO), and co-organized by China International Capital Corporation limited (CICC), Shenwan Hongyuan Group Co., Ltd., China Securities Co., Ltd.(CSC), and Galaxy Securities. The forum was also strongly supported by Beijing Municipal Government. Corporate executives, officers of institutional investors and government officials from dozens of countries around the world gathered together to express their opinions about "international industrial cooperation and bilateral investment." Discussions covered the topics of "China's economic development and global investment trends," "building a cross-border investment ecosystem" and "reinventing bilateral funds". Ideas on the investment trends in consumer and services, healthcare, TMT, industry and manufacturing, among many sectors, were discussed in great depth, leading to a range of consensuses on future cooperation.
Thousands of senior executives from China and abroad attended this forum. Focusing on international industrial cooperation and bilateral investment, a myriad of bilateral cooperation initiatives between China and the United States, Japan and other developed countries were established. International financial institutions such as Goldman Sachs, HSBC, Nomura Securities, and Daiwa Securities set up exhibition booths at the forum. The forum also provided a mobile APP-based "one-on-one" matching system, by which the participants could initiate "one-on-one" meetings to discuss cooperation on investment and business opportunities. Field trips would be arranged to five districts of Beijing for participants after the forum to get a first-hand experience of the development of Chinese enterprises and industrial parks; the special event of "American governor visits CIC: Kentucky" was also arranged to promote exchanges between domestic companies and delegations from the State of Kentucky, with a focus on automotive and manufacturing industries.
The forum commenced at 8 am in the morning. Tu Guangshao, President of CIC, Gao Yan, Chairperson of CCPIT, and Wang Jianzhou, Chairman of CAPCO, delivered opening remarks. The forum was anchored by Yang Guozhong, Chairman of Board of Supervisors of CIC.
In his speech, President Tu said that in the presence of so many guests from home and abroad, he would like to summarize the main purpose of this forum, the past initiatives of CIC, and the business philosophy of CIC with 'six ones':
Focus on ONE theme and strengthen ONE consensus. The theme of the CIC Forum 2018 was "international industrial cooperation and cross-border bilateral investment", an innovative approach to implement strategies for foreign investment in line with China's needs for further opening up. Economic globalization was an irreversible trend, despite the recent challenges and setbacks. Therefore, promoting global economic, trading and investment cooperation was a common responsibility for all of us. The purpose of the forum was to build a platform to bridge cross-border bilateral investment, create a cross-border investment eco-system, promote international industrial cooperation, and build a cooperation platform for Chinese enterprises to "go out" and "bring in" overseas capital.
Build ONE platform and promote ONE set of cooperation. In the past a few years, CIC actively participated in bilateral and multilateral economic and trade cooperation, expanded new channels for investment by connecting domestic and international institutions, and actively prepared for and explored the establishment of bilateral funds that could meet the needs of the time. CIC would continue to leverage its resources to collaborate with partners, strive to build cross-border investment platforms, and explore of the "ecosystem model" of "bilateral funds plus cross-border investment". The CIC Forum is an important part of building such cross-border investment platforms. In 2017, we held the first CIC forum attended by senior executives of hundreds of enterprises from China and abroad. This year's forum aims to further connect China's industrial and financial sectors with the rest of the world and form effective interactions between international industrial cooperation and bilateral investment.
Express ONE philosophy and commit to ONE action. As China's sovereign wealth fund, CIC had, over the past more than 10 years, adhered to the philosophy of win-win cooperation as a responsible, long-term investor. At the end of last year, witnessed by President Xi Jinping of China and President Trump of the United States, CIC and Goldman Sachs established the China-US Industrial Cooperation Partnership in Beijing. The fundraising and investment of the fund achieved great successes, and it had become an important link for bilateral investment of two countries against the backdrop of Sino-US trade friction. Two weeks ago, during the first China-Japan Third-Party Market Cooperation Forum attended by Premier Li Keqiang of China and Prime Minister Shinzo Abe of Japan, CIC and five Japanese financial institutions jointly signed a MOU on establishing the China-Japan Industrial Cooperation Fund. We were also preparing for the establishment of other bilateral funds. These bilateral funds were aimed at achieving win-win cooperation with the basic principles of "co-sponsorship, joint management, complementary, and commercial viability".
Chairperson Gao Yan pointed out that with today's economic globalization, all nations were interdependent in the international industrial division of labour. Supply chains, industrial chains and value chains of all the countries were interconnected. Discussions on key issues in cross-border investment such as consumption globalization, smart manufacturing, healthcare, mobile Internet, and so forth. This was in line with the global economic trend and the needs of companies. The CCPIT would deepen its cooperation with institutions such as CIC and CAPCO, and build "bridges" to provide services for dialogues and exchanges, project cooperation and industrial cooperation between domestic and foreign enterprises.
Chairman Wang Jianzhou pointed out that many listed companies attached great importance to international industrial cooperation. They were open to various foreign investments and actively expanded cross-border investment. Listed companies actively signed up to join the forum, hoping to exchange experience on international industrial cooperation with domestic and foreign companies and find opportunities for bilateral cross-border investment. He made three observations. First, the goal of international industrial cooperation and cross-border investment was win-win for all parties. Second, the market still had great potential. Third, cross-border investment companies should focus on fulfilling their social responsibilities.
After the opening ceremony of the forum were keynote speeches and roundtable forums. Over twenty government officials and renowned entrepreneurs delivered speeches and joined panel discussions, including Zhou Xiaochuan, Chairman of China Society for Finance and Banking, David Solomon, CEO of The Goldman Sachs Group, Inc., Chen Jining, Mayor of Beijing, and Richard M. Daley, former Mayor of Chicago. Liao Min, Deputy Director of The General Office of the Central Financial and Economic Affairs Commission & Vice Minister of Finance and Cao Yu, Vice Chairman of China Banking and Insurance Regulatory Commission also attended the Forum.
The keynote speakers focused primarily on the global economic and trade situation, recent trends in international industrial development and cooperation, and new developments in cross-border investment. It is widely observed that globalization had encountered some obstacles lately, and protectionism on trade and investment was on the rise. The spill-over effects of the major countries' policies were detrimental, causing new shocks to the international industrial development and cooperation. At the same time, modern technologies brought about a shift in production methods and international industrial division of labour. Profound changes took place in global value chains and industrial chains. The rise of China's economy became a new force to stimulate the global growth. The Belt and Road Initiative was welcomed by more and more countries. The China International Import Expo, which just opened, was widely praised. Many foreign companies sought to collaborate with Chinese companies and investors to share their technologies, brands and channels with the Chinese market of 1.3 billion consumers. In collaboration with the government, an increasing number of Chinese companies took the initiative to "go out" and build a cooperation platform, promote the positive interactions between 'going out' and 'bringing in'.
At 2pm, the session of industrial investment discussions started. This session consisted of four parallel panels. The panel on Healthcare was hosted by Galaxy Securities and focused on cross-border cooperation in the healthcare service sector and the pharmaceutical industry. The panel on Consumer and Service was organized by Shenwan Hongyuan Securities; topics included China's consumption and investment trends, consumption globalization and cross-border investment in the new economy. The panel on TMT, hosted by China Securities Corporation, focused on the industrial competition and cooperation in the era of AI and mobile Internet's development in the next decade. Organized by CICC, the panel on Industrial Manufacturing focused on topics such as the value creation of cross-border investment in the manufacturing industry from the "Chinese perspective", and "smart manufacturing" for future factories. The four panels meant to enhance the communication and connections among industrial peers.
During the forum, participants had more than 100 "one-on-one" meetings with great enthusiasm. Assisted by the "matching APP" and preliminary screening by the forum's organizing team in advance, participants of the "one-on-one" meetings had the opportunity to communicate in person to explore investment and business opportunities.