Executive Dean Liu Xiaochuan’s Participation in the 4th China PPP Financing Forum Roundtable Theme Forum IV

From November 22nd to 23rd, 2018,the 4th China PPP Financing Forum, co-sponsored by the PPP Center of theMinistry of Finance and the Shanghai Financial Federation, was held at theShanghai International Convention Center. The forum was divided into sevenroundtable theme forums. Liu Xiaochuan, the Executive Director of theInstitute, attended and hosted the Roundtable Theme Forum IV: Risk Preventionand PPP Financial Innovation. Those who also attended the round table were ZhouJinsong, the Vice Director of Department of Treaty and Law of Ministry ofFinance; Jin Haizeng, the Party Member and the Vice Director of HebeiProvincial Finance Department; Liu Shaotong, the Vice General Manager of theShanghai Stock Exchange; Zeng Hui, Director of the Credit Department One of theFinancial Market Division of the People's Bank of China; Fan Yongfang, theInvestment Director of China Government-Enterprise Cooperative Investment FundManagement Co., Ltd.; Liu Xiaojun, the Vice General Manager of CITIC Trust Co.,Ltd. and Tan Zhiguo, the Vice General Manager of China Investment ConsultingCo., Ltd.

First of all, Dean Liu Xiaochuandelivered a welcome speech and pointed out that in the new era, PPP riskcontrol and financial innovation are the key to the development quality of PPP.Later, the Dean Liu Xiaochuan invited the guests in turns to give a speech.

In the keynote speech, Vice DirectorZhou Jinsong pointed out that the high-quality development in the new erarequires a PPP model and continuous reform of PPP. The quality and efficiencyof the PPP model would be promoted through innovation. Besides, we must thinklegally and introduce PPP-related laws and regulations as soon as possible topromote PPP reform.

According to the experience inconducting PPP work in Hebei, Vice Director Jin Haizeng proposed to implementnormative constraints, combine powerful management with guidance, strengthencapacity building depending on various measures, provide more promotiontraining, maintain information open and persist in making our task familiar toeveryone.

Liu Shaotong, the Vice GeneralManager, mainly expressed his views on the relationship between financialinnovation and the promotion of PPP management. He deemed that financialinnovation would be conducive to the development of the PPP market, and thatlegally compliant and regulated PPP projects were more risk-proof.

According to the long-term working experience,Director Zeng Hui pointed out that the law of development of PPP should bescientifically controlled, and the implementation of PPP projects should beattached great importance to prevent risks caused by irregular operations, andthe project approval, power and responsibility determination, performance appraisal,internal control and other mechanisms should be perfected.

Fan Yongfan, the InvestmentDirector, trusted that there were several different aspects in the PPPinnovation, including cognitive innovation, responsibility distributioninnovation, cooperation model innovation, work process innovation andcollaborative innovation, and she pointed out that there was no end to innovation.

Liu Xiaojun, the Vice GeneralManager, shared CITIC Trust's experience in PPP risk management and businessinnovation. He believed that the trust company's active management abilitycould prevent PPP project risks, and the flexibility of the trust system wouldinnovate PPP business model and asset securitization would also vigorouslypromote the development of PPP business.

Tan Zhiguo, the Vice GeneralManager, expressed his views on the difficulty in PPP financing from theperspective of the third party. He thought that the main reasons were highprincipal but low income, long duration and complicated procedures, and fewchannels to withdraw from difficulties of credit, while the focus was theunreasonable distribution of risks.

After each guest’s speech, Dean Liu Xiaochuan made aconcise summary. After the speeches of all the guests, Dean Liu Xiaochuanraised the issues of legislation and risk aversion according to the theme ofthe round table and the speeches of the guests. All the guests actively participatedin the discussion and expressed their opinions separately. At the end of thisroundtable theme forum, Dean Liu Xiaochuan made a summary and a conclusion.