Pan said that in 20 16, China's foreign direct investment (ODI) grew rapidly, up 40% year-on-year, while the growth rate in previous years was generally between 10%-20%.
Pan said: "Generally speaking, this is a good thing, which is conducive to promoting China's economic transformation, promoting the economic growth of the world economy and the host country, and achieving mutual benefit and win-win. There are also macro backgrounds such as the rise of China's comprehensive national strength, the improvement of the level of opening up to the outside world, the' Belt and Road Initiative' and the steady progress of international capacity cooperation. "
However, Pan pointed out that some irrational and abnormal investment behaviors were also found in daily supervision. For example, domestic steel mills buy catering companies overseas, and domestic restaurants buy online game companies overseas.
For example, he said, "Last year, China enterprises acquired many football clubs overseas. If the acquisition is conducive to improving the football level in China, I think it is a good thing. But is this the case? Many enterprises have high debt ratio in China, and then borrow a large sum of money to buy overseas. Some transfer assets under the packaging of direct investment. "
Pan stressed that the China government has been encouraging China enterprises to participate in the international market and foreign investment, but foreign investment should be more healthy and orderly. In the past few months, the growth rate of ODI has declined, and market players have gradually returned to rationality. In the 1980 s, the voice of Japan buying the United States was also very high, and such a lesson is not far away. China enterprises going out, going fast does not mean going well. Only when you walk steadily can you walk well.
Pan said: "I have also engaged in mergers and acquisitions of overseas commercial organizations. My experience is that overseas mergers and acquisitions are sometimes like a bunch of roses with thorns, so we must be cautious and fully demonstrated. It's like holding a handful of sand on the beach. It seems to be caught, but it will eventually flow away from you. "
According to the Observer. Com, 20 16 China enterprises have made massive acquisitions of football teams and clubs overseas, mainly including:
Fosun Group acquired British Crown Wolves, China consortium TTA acquired British Birmingham Football Team, Yi Yun Guo Kai acquired British West Bromwich Football Team, Double-edged Sword Sports acquired Spanish Granada Football Team, La Liga Happy acquired Spanish team, Suning acquired Italian Inter Milan, 7-day hotel founder acquired French Nice Team, and Hanhua acquired Premier League team Hull (preliminary acquisition agreement). China consortium Olkin bought French team Oszer, China consortium led by China Europe Sports bought Serie A team AC Milan, Shenzhen Lehman bought Australian Newcastle Jet, China investment fund IDG bought French team Lyon, Xu Genbao bought Spanish team lorca by Shanghai Longfeng Enterprise Group and Everbright Group bought English team Liverpool.
In addition, at the forum, Pan also talked about China's foreign exchange reserves, RMB exchange rate and foreign investment and other hot issues.
Foreign exchange management will no longer go to the prison of capital control.
In an interview with CBN at the beginning of the year, Pan once again mentioned his metaphor that the window of opening foreign exchange management policy "will never be closed again": "This metaphor may not be appropriate, but the attitude is clear, that is, China's foreign exchange management will not go back and will not come to the prison of capital control again".
If four conditions are met, foreign profits in China can be remitted.
Regarding foreign direct investment in China, Pan said that in 20 16, foreign direct investment in China ranked third in the world and first in emerging markets, and the investment structure has been greatly improved. It is predicted that with the economic growth of China, the promotion of structural reform and the huge market size of China, China will remain an attractive investment destination for long-term capital.
He also promised that China will actively create a relaxed and orderly investment environment for foreign investors to invest in China, and there will be no restrictions on the remittance of real and compliant funds such as capital increase, capital reduction, share conversion and divestment.
In response to previous media reports that the profits earned by foreign companies in China cannot be remitted normally, Pan responded that the profits earned by foreign companies in China can be reinvested in China or remitted, but there are some basic conditions for remittance:
First, according to the legal requirements of China Company, it is necessary to make up for the previous losses; Second, there must be a profit distribution resolution of the board of directors; Third, there must be financial statements audited by the audit department; Fourth, you must have a tax payment certificate in China. To meet these requirements, it is no problem for enterprises to remit profits.
"These four conditions are not the current conditions, but the conditions that have always existed in the past."
Promoting the opening of the capital market has different emphases in different periods.
Pan said: "We will continue to promote the two-way opening of China's financial market. One of the important tasks is to promote the opening of China's capital market. "
However, he also stressed: "the opening of capital projects should have a great relationship with a country's economic development stage, financial market situation and financial stability." Therefore, in different periods, the focus, rhythm and timing of promotion should be related to the situation of a country's financial market and international market. "
Cross-border capital flow, positive equilibrium convergence
Pan also pointed out two important factors in observing cross-border capital flows: more diversified foreign asset holders and the process of repaying foreign debts.
Previously, China's overseas assets were mainly held by official foreign exchange reserve assets, with a peak of over 70%. However, since 20 10, the proportion of overseas assets held by market players has been increasing, reaching 50% in 20 16.
In addition, during the implementation of quantitative easing monetary policy by the Federal Reserve, China enterprises gained more foreign debts. After the Federal Reserve began to raise interest rates and the domestic financing environment improved, enterprises began to repay their foreign debts in the second half of 20 14 to reduce the risk of currency mismatch. However, Pan pointed out that since the second quarter of 20 16, the deleveraging process of corporate foreign debt has basically ended and the scale of foreign debt has begun to increase.
He said that China's cross-border capital flows are converging in a balanced direction. China's economy is in the middle and high-speed growth range. With the deepening of supply-side structural reform, China's economic growth will be more quality in the future; China's current account surplus remains within a reasonable range, and China will remain one of the most competitive and attractive destinations for overseas long-term capital investment.
He once again stressed that China has abundant foreign exchange reserves, accounting for 28% of the global foreign exchange reserves.
The RMB exchange rate is basically stable at a reasonable and balanced level.
Regarding the RMB exchange rate, Pan said that the exchange rate formation mechanism has been continuously improved in the direction of market-oriented reform, and the regularity, transparency and marketization of exchange rate policies have been continuously improved: "Keep the RMB exchange rate basically stable at a reasonable and balanced level, and maintain the stability expected by the market, especially for a basket of currencies; At the same time, according to the changes in the international foreign exchange market and the relationship between market supply and demand, we will enhance the flexibility of the exchange rate and maintain the function of the exchange rate to adjust the balance of payments.
"In the past, we also saw that the RMB exchange rate remained basically stable in two-way fluctuations. Among them, the RMB fluctuated slightly against a basket of currencies, and the bilateral exchange rate of the RMB against the US dollar also showed bilateral fluctuations."