On November 28, renowned Chinese finance media the 21st Century Business Herald Press, held the "21st Century Annual Finance Summit of Asia". At the Summit, the Press awarded China Minsheng Investment Corp., Ltd. (hereinafter referred to as "CMIG") the honor of one of the "Companies with Highest Investment Value in 2015", so as to recognize CMIG's outstanding investment performance in the "One Belt One Road" initiative and the industry-finance integration over the past year.
The organizing committee of the Summit noted at the award ceremony that "CMIG is a benchmark company that leads private corporations to make foreign investments under China's 'One Belt One Road' strategy. Its investment mode featuring industry-finance integration is refreshing and innovative for domestic investments. In this regard, we award CMIG the honor of 'Companies with Highest Investment Value in 2015", and wish it better performance next year."
In the meantime, Li Huaizhen, President of CMIG, participated in the discussion on the "Financial Reform in the 13th Five-Year Plan", and shared the opinions of CMIG on the future development of China's financial industry.
In his opinion, during the "13th Five-Year Plan", we should focus more on bringing social capital or private capital into full play. According to his observation, the direction and form of the flow of Chinese private and social capital have undergone some new changes over the past two years.
Two trends are exhibited in the flow direction of the private capital: On one hand, some capital is flowing outbound towards countries along the "One Belt One Road" route. On the other hand, some is flowing into new strategic regions in China, such as the Yangtze River Economic Belt, the Beijing-Tianjin-Hebei Synergic Region, the Pearl River Delta, and some areas and provinces that can effectively integrated into the "One Belt One Road" initiative. The flow form of private capital is changed in three ways: First, the scattered capital becomes more concentrated. Second, the spontaneous capital becomes more standardized. Third, the physical industry-finance integration becomes chemical.
A new financing mode led by private capital or with more of its participation may play an increasingly important role in the future. President Li Huaizhen vividly summarized this mode as the "Five Pluses" strategy.
He explained that the first plus sign is the big platform plus the small platforms; CMIG is a big platform for private capital, but it is the small platforms that promote our projects. The second plus sign shows private capital plus state-owned capital. Private capital alone will not work because even though it has flexible mechanism and high efficiency, the state-owned capital is capable of integrating technologies and resources both in "form" and "essence". The third plus sign means capital plus leverage. This suggests that we should integrate capital from banks, insurance and other sources. The fourth plus sign means market plus government. All of the private capital is borrowed except for the part owned by the private investors. Hence, they must be under the government's guidance when integrating into the market. The fifth plus sign explains the highly chemical integration of industry and finance. Neither one of them can work well without the other. Industries should adopt financial ideas, and finance should be based on industries.