Fang Xinghai: China should provide new measures and drivers for a new round of globalization

At the 12th Lujiazui Forum 2020, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, said at the Plenary Session III that the rationale of continued globalization still exists, and the economic and technological drivers of globalization have not changed. Therefore, there may be a new round of globalization after the pandemicis over.

Fang explained that the rationale of globalization is that allocating resources globally can minimize costsand maximize efficiency. He believed that China should provide new measures and new driversfor a new round of globalization, and offer new proposals to facilitatethe new round of globalization. This is beneficial to the development of China as well as the rest of the world. For example, he said that in the effort to turn Shanghai into an international financial , financial opening up can be greatly promoted to make Shanghai a pioneer in this regard. At the same time, the internationalization of RMB and its convertibility under capital account can be pushed forward so that RMB-denominatedassets in the financial marketsof Shanghai can be conveniently held and traded by global investors."In this way, I feel that a new round of globalization will gain momentum, which will bring about broaderflow of capital, higherefficiency of capital allocation, and a saferglobal financial system." Fang noted.