Forthefirsttime,ChenYuanrevealstheformulationprocessofmajorinvestmentpoliciesfromhisownperspective,togetherwithanin-depthanalysisofbothnationalcircumstancesandtheinternationalsituation.AlltheseoccurrencesepitomizeChina鈥檚socio-economicdevelopment,especiallyinthefinancialarea,inrecentdecades,thusmakingitamust-readtounderstandthe鈥済overnmentandmarket鈥漺ithChinesecharacteristics.
ChenYuanhasmaderemarkableachievementsineconomicandfinancialtheories.Duringhis20-plusyearsoffinancialworkexperience,whetherasasupervisororapractitioner,hehasinsistedonfinancialreforms.SincetheAsianeconomiccrisisin1998,ChenYuanhasledtheCDB鈥檚changefromatraditionalpolicybanktoaworld-classdevelopmentfinancinginstitute,withincreasingglobalimpact鈥揳llthankstohisdevelopmentfinancetheory.
Whatisdevelopmentfinance?Itisessentiallyafinancialmethodthatservesthenationaldevelopmentstrategythroughmedium-andlong-terminvestmentandfinancing.Basedonboththegovernment鈥檚credibilityandmarketrules,itbreaksthroughthebottleneckofsocialandeconomicdevelopment,safeguardsfinancialstabilityandstrengthenscompetitiveness.Whetherinadevelopingordevelopedcountry,wherethereisadevelopmentdeadlockthereisleewayfordevelopmentfinancetoshowitscapabilities.Otherwise,neitherthemarketitselfnorbusinessfinancingcanachievethegovernment鈥檚developmentgoals.
Thewholebook鈥搘hichincludesadiscussiononthepracticalexplorationofdevelopmentfinance鈥揷overstopicsrangingfrombank-governmentpartnershipandnationalstrategytoregionalplanningandinternationalfinancialcooperation.Eachchapterconstitutesthreeparts:acasestudy,theory,andpractice,inwhichtheauthorpresentsbothbackgroundinformationandbigevents,togetherwithhispublicationsandinterviewswiththemedia.
In1998,duetothedisastrousAsianfinancialcrisis,China鈥檚economysufferedanenormousshock.TheChinesegovernmentformulatedaseriesofpoliciestoaccelerateinfrastructureconstruction,majorprojectconstruction,enterprises鈥檛echnologicalupgradingandasencouragementtoinvestinfixedassets.CDBwasthenthelargestpolicybankinChinaandshoulderedtheresponsibilityofdiscoveringnewsourcesofeconomicgrowth.ChenYuanimmediatelycarriedoutinvestigationsineightprovincesandmunicipalitiesthatsummer,andbuiltanew-typeofbank-governmentpartnership鈥搕heWuhuModel鈥搘ithlocalgovernment.Itsaimwastoconstructanewfinancingplatformandtohighlighturbaninfrastructureinacceleratingeconomicgrowth.
In2000,theStateCouncilpromulgatedtheWesternDevelopmentStrategy.CDBstrengthenedcooperationwithlocalgovernmentstospeeduptheestablishmentofamarketmechanismandscientificplanninginwesternareas.Italsohelpedwithfinancingtobolsterlocalinfrastructurebuildingsandthedevelopmentofcharacteristicindustries.Duringthedecadefrom2001to2010,CDBissuedaccumulatedloansofRMB1.66trillionto12westernprovinces,autonomousregionsandmunicipalities,accountingforonefourthofCDB鈥檚totalloansoverthesameperiod.
InclusivefinanceisanotherareaCDBmainlyfocuseson.Thebankcreativelytransformedlong-standingproblemsconcerningpeople鈥檚livelihoods,suchasstudentloans,government-subsidizedhousingprojects,thethreeruralissuesofagriculture,farmersandruralareas,medium-sizedandsmallenterprises,andwaterconservancyconstruction,intosustainablemajorbankbusinesses.CDBisthebankthatgivesthelargestloanstopoorstudentsandforaffordablehousingprojects.Itisalsoamajorforceinsupportingnewconstructioninruralareas,waterconservancyconstructionandmedium-sizedandsmallenterprisesdevelopment.
In2008,theglobaleconomiccrisis,triggeredbythesub-primecrisis,shockedtheworld.China鈥檚centralauthorityreadjusteditsmacro-economicpolicies.InNovember,theStateCouncilpromulgated10measurestoexpanddomesticdemandandacceleratesteadyandrapideconomicgrowth.Amongthem,government-subsidizedhousingprojects,ruralinfrastructureconstruction,andconstructionofrailway,highways,andairportswerethepriorityofCDB.Morethanamonthbeforetheendof2008,CDBhadfinishedtheassignmentoftheCentralBankofChinawithanincreaseofRMB70.2billioncreditavailability,thusbolsteringChina鈥檚economicstabilizationandrecovery.
Howcanonefindthejointpointofgovernmentcreditandmarketcredit?Moreandmoregovernmentshaverealizedthatgivingfullplaytodevelopmentfinanceisaneffectivewaytohandletheglobalfinancialcrisis.Developmentfinancinginstitutesinvariouscountrieshaveexpandedtheirstrongsupportforeconomicentitiesandmadecontributionstosafeguardingmarketstabilityandrevivingnationaleconomies.