During the Twelfth Five-Year Plan , the overall goal of Dalian's financial development is to become a regional financial center in the Northeast. said Xiao Shengfeng, member of the Standing Committee of the CPC Dalian Committee, executive vice mayor and Secretary of the Party Working Committee of Finance, in an exclusive interview with Dalian Daily yesterday.
The total assets of financial institutions in Dalian have reached 1,300 billion yuan
Reporter: On February 26, you made a report titled How to Promote Good and Fast Development in the Financial Sector, with an Aim to Construct a Regional Financial Center at the 2011 Dalian financial work conference held by the municipal Party committee and municipal government, and reviewed the breakthrough in the city s financial work during 2010 and the Eleventh Five-Year Plan . What do you think are the achievements in our city s financial work?
Xiao Shengfeng: The year 2010 is a very significant year when the city has made big achievements in implementing the national strategies and promoting the construction of a regional financial center. Under the correct leadership of the municipal Party committee and the municipal government, our financial work has made a breakthrough with the joint efforts of all the financial regulators, financial institutions, districts and relevant departments. By the end of 2010, the total assets of financial institutions in Dalian have reached 1,300 billion yuan, an increase of 26.2%; the deposit balance in the city's banking institutions has reached 888.73 billion yuan, an increase of 23.2%; premium income has reached 15.1 billion yuan, an increase of 32.4%; securities transactions have reached 853.6 billion yuan; and futures transactions have reached 41,700 billion yuan, an increase of 10.8%.
Since the municipal Party committee and municipal government regard the construction of a regional financial center as an important role, they have taken a series of effective measures to strengthen leadership and improve the mechanism, in order to promote the construction of a financial center. The municipal government has established a leading group for constructing the regional financial center. It has also organized a mechanism with the principle that the regional financial center should be built under the leadership of the city s Party Working Committee of Finance and Discipline Inspection Committee, market guidance, promotion by the government and the support of all social circles . It has made plans and policies to encourage the development of the financial sector, as well as an assessment of development in the financial sector during the Eleventh Five-Year Plan , and a plan for financial development in the Twelfth Five-Year Plan . So far, it tries to improve financial innovation, promote the construction of a financial functional area, and implement "bringing in" and "going out" strategies, so as to improve regional finance cooperation and aggregation. In 2010, the city overfulfilled its annual financing plan, with an amount of 223.1billion yuan. It has made great efforts to promote its credit availability and expand financing channels. Development in the service economy has achieved remarkable success. Rural financial service has been enhanced. Financing difficulties confronting small-and medium-sized enterprises have been eased, and they have made great breakthroughs in the listing task. Finally, financial market order has been enhanced.
Over the past five years, there has been great development in the city s financial institutions, and a financial center has begun to take shape. There is also big progress in the city s financial sector: overall financial power has increased dramatically; the financial service system has been perfected; support for economic development has been enhanced; and the financial environment has been improved. The city s total financial assets, total deposit balance, total loan balance, premium income, and securities transactions at the end of the Eleventh Five-Year Plan are 2.5, 2.6, 2.7, 2.6, and 12 times respectively the amount of those at the end of the Tenth Five-Year Plan ; futures volume and transactions during that period are 4 and 8.9 times the amount of those at the end of the Tenth Five-Year Plan .
Dalian s predominance compared with that of other key cities is not obvious
Reporter: The year 2010 is the ending year of the Eleventh Five-Year Plan . Over the past five years, there has been great development in the city s financial institutions, and a financial center has begun to take shape. There is also big progress in the city s financial sector: overall financial power has increased dramatically; the financial service system has been perfected; support for economic development has been enhanced; and the financial environment has been improved. Our city has been honored as a China Top Ten Financial Eco-city for three consecutive years. In the ranking of the first China Financial Center Index , our city ranked first in Bohai Sea Rim and the Northeast area. While affirming the achievements, what deficiencies do we still have?
Xiao Shengfeng: Firstly, the functions of our regional financial center are not sound enough. The total scale of the city s financial sector is not large enough; its absorbing and influencing power on different financial factors is not big enough; its predominance compared with other key cities in the Northeast is not obvious enough. Secondly, the financial service system is not comprehensive. The number of authorized entities is small; there are no financial companies or financial leases; the proportion of direct financing is low; financial services for small and medium-sized enterprises and agriculture, rural areas and farmers need to be perfected. Thirdly, internal management of financial institutions is not good enough. Financial institutions, especially the corporate governance of authorized entities, need to be strengthened; operation and management ability needs to be enhanced; core competency needs to be promoted. We should study all those problems and take effective measures to solve them in the development of financial sector.
A regional financial center will take shape by 2015.
Reporter: what are the guiding ideology and the development goals of Dalian during the Twelfth Five-Year Plan ?
Xiao Shengfeng: The guiding ideology of the city s financial sector development during the Twelfth Five-Year Plan is: with the guidance of the Outlook of Scientific Development , we should thoroughly implement the development plan for the Liaoning Coastal Economic Zone, improve financial reform, expand financial opening, and promote financial innovation. We should make efforts to enlarge financial volume, perfect the financial system,and strengthen financial function, as well as complete relevant systems and mechanisms, and improve the financial environment. Moreover, we should adjust arrangement sensibly, enhance core financial competency and regional influence, and promote the construction of a regional financial center, so as to provide financial support and fund guarantees to make big progress in the city s scientific development. The overall development goal is: by 2015, a financial center in the Northeast will take shape; all-round development will take place in financial institutions; a multi-level capital market will be in place; a financial service system based on multiple governing subjects, orderly competition and complete functions will be set up; our power as a financial headquarter will be increased; rural finance, financing for small and medium-sized enterprises and direct financing will be enhanced; support by the financial sector for local economic and social development will be intensified; key financial functional areas will be in place; the financial environment will be improved; total financial assets of the city will reach 2,500 billion yuan; the annual increase of major financial indicators will reach more than 16%, whose proportion in the Northeast will be more than 22%; the percentage of financial added value will reach more than 7% of the city s GDP.
Construction of a regional financial center and economic-social development need to be speeded up
Reporter: since the year 2010 is the first year of the Twelfth Five-Year Plan , what is the city s principal task in financial sector development?
Xiao Shengfeng: we should stick to the construction of a regional financial center and the economic and social development of the city, in order to complete the following tasks:
We should thoroughly promote the construction of a regional financial center, and carefully study the characteristics and regular patterns of construction of a financial center. Learning from successful experience in global financial center construction, we should enhance the construction of a regional financial center, through the provincial financial reform and innovation pilot cities platform . Firstly, we should strengthen the organization and enforcement of plans. According to the development principles and goals of Regional Financial Center Construction Plans , we should continue completing mechanisms, assigning tasks and implementing responsibilities, in order to carry out goals, tasks and measures assigned in the plans. Secondly, we should innovate some relevant systems and mechanisms. We have to call for financial reform pilot policies, promote cross-border trade RMB settlement experimental units, value the function of the market mechanism in promoting the construction of a financial center, improve market building and system building, set up modern financial enterprise systems, promote the innovation of products and services, develop financial service brands, and increase the power of financial development. Thirdly, our leading role in the futures industry needs to be enhanced. We should support the Dalian Commodity Exchange to carry out its strategies in variety, scope, innovation, talents and internationalization, in order to promote the listing of coal and some other futures. Moreover, we have to develop and look for strategic varieties of futures that are regionally influential, so as to speed up the construction of a futures center in Northeast Asia. Fourthly, construction of financial functional areas needs to be promoted. We should improve investment in the Renmin Road financial business district, Xinghai Bay Financial town, and the financial services outsourcing base in Dalian High-tech Industrial Zone. We should also speed up the construction of financial functional areas in Dadonggou, Wolong Bay, Jinbo Coast and Dalian Free Trade Zone. Fifthly, the influence of those financial headquarters needs to be enlarged. We should positively support the capital and stock increase of financial headquarters such as the Bank of Dalian, Century Life Insurance Company and Daton Securities, in order to perfect capital structure, increase asset quality and level of operation and management. We should also improve the arrangement of a national network and enhance our general influence. Lastly, regional financial cooperation needs to be strengthened. Interaction among regional financial centers is going to happen, therefore the city will play a role as a core city to promote joint development in the Coastal Economic Zone.
We should increase financial support for economic and social development, and take effective measures to ensure the completion of a 220 billion yuan financing plan in 2011. Firstly, credit availability needs to be well organized. We should join capital and projects together for major infrastructure projects and major industrial projects, encourage financial institutions to actively seek resources from their head office, and extend credit through effective sources such as bank enterprises, bank policies, inter-business cooperation and syndicated loans, so as to make our loan balance rank top among the sub-provincial cities, based on the completion of the annual credit plan. Secondly, equity investment needs to be well developed. We will accelerate the 1 +10 + N equity investment plan, and make efforts to realize a great-leap-forward development in the equity investment industry by focusing on the establishment of the Development Fund of Liaoning Coastal Economic Zone, the Port and Shipping Industry Fund, the Urban Construction Fund, the Green Industry Fund and the Livelihood Funds. Thirdly, financing channels need to be expanded. We should continue to drive our enterprises to be listed on the main board, the SMSE stock market, GEM and overseas stock markets, and add 10 more listed enterprises to maintain the good momentum of enterprise listing. We should also explore the development of three new board markets, bonds, finance bills, leasing, and trust financing, to further improve our direct financing capacity. Fourthly, financial services for rural areas and small and medium-sized enterprise needs to be improved. We must accelerate the improvement of the rural financial service system and establish rural commercial banks so as to develop the pilot projects of new rural financial institutions, small loan companies and agricultural insurance, as well as to set up two small and medium banks, 15 loan companies and 15 credit guarantee corporations. Agriculture-related credit will increase and the increase of rural credit will be no less than that of the city. Through listing, bonds, insurance, leasing and other financing tools, we should continue to promote SME financing, expand financing channels, and improve SME financing services. Small secured loans will reach more than 100 million yuan to support start-up employment
Soft power of financial development needs continuous enhancement
Reporter: In which aspects will the Party Committee and the Municipal government create a beneficial environment for financial development?
Xiao Shengfeng: The soft power of financial development needs to be continuously strengthened. We should further optimize the city's financial development policies, laws, credit, human resources, etc., which will be helpful for strengthening the gathering capacity of financial elements and solving problems during financial reform, innovation and development, in order to create a first-class environment for financial sector development. All the regions, departments and financial institutions should increase efforts to strengthen departmental interaction, integrated supervision and management, and self-regulation of local financial work, and enhance the basis of financial development, so as to encourage the whole city to improve the establishment of a finance center. We should also strengthen and improve Party building in our financial system, giving full play to the functional role of the party working committee and the disciplinary committee for financial institutions, so as to strengthen the party's ideology, organization, working-style, system, and the task of combating corruption, and build a clean government, which will provide strong support for the construction of financial centers.
From: Dalian Daily
