Annual Conference of Financial Street Forum 2020 was held on October 21 and CIC co-hosted the parallel forum of Financial Opening and Market (the Forum). Annual Conference of Financial Street Forum 2020 was co-hosted by the Beijing Municipal government, People’s Bank of China, Xinhua News Agency, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange. Due to the pandemic, it was held both physically and virtually.

Mr. Peng Chun, Chairman and CEO of CIC observed in his opening remarks that overshadowed by the pandemic, institutional investors are faced with challenging macro-economic and financial situations, and international cooperation and cross-border investment are significantly more difficult. As China’s sovereign wealth fund, CIC will continue to operate on international, market-driven and professional basis, and remain committed to long-term, financial and responsible investing with a focus on win-win results. CIC will also contribute to the steady recovery of the world economy in its pursuit of long-term financial returns through diversified investment around the globe. Mr. Peng Chun also called for an open, fair and non-discriminatory international investment environment to foster benign competition, lay a foundation for global growth, and enable the financial sector to better help boost the economy.

Ben Shalom Bernanke, former Federal Reserve Chairman and Senior Advisor to Citadel pointed out in his keynote speech that the US economy proved more resilient than expected but still faces great pressure. Given the ongoing pandemic, it is even harder to rebound the economy and continuous fiscal and monetary policy support is needed.

More than a dozen government officials from home and abroad and senior executives of leading international financial institutions delivered themed speeches on topics including ‘Global Landscapes in the Post-Pandemic Era’, ‘Institutional Investors’ Philosophies on ESG Investment, Long-term Investment and Value Investing’, and ‘Volatilities and Challenges in the International Financial Market’. Speakers in this session included Zhao Yingmin, Vice Minister of the Ministry of Ecology and Environment; Xuan Changneng, Deputy Administrator of State Administration of Foreign Exchange; Wang Wenling, Vice Chairman of National Council for Social Security Fund; Dominic Barton, Canadian Ambassador to China; Zhang Lei, Founding Partner and CEO of Hillhouse Capital Group; Larry Fink, CEO of Blackrock; Joe Bae, Co-President and Co-COO of KKR; Stephen Schwarzman, Chairman of Blackstone; Joshua Cooper Ramo, Co-CEO of Kissinger Foundation; Scott Minerd, CIO of Guggenheim Asset Management; Ray Dalio, Co-CEO and Co-CIO of Bridgewater; and John Waldron, President of The Goldman Sachs Group, Inc.

The speakers said that issues arising from the pandemic will suppress economic growth over the medium- to long-term. Against this backdrop, the long horizon of institutional investors is vital to address the challenges and achieve their goals. The opening of China’s capital market is progressively taking effect, giving foreign companies more access to the China market. Against the global backdrop of economic restructuring and industrial chain reorganization in the post pandemic era, what bears attention are sectors with long-term structural growth and sectors that can hedge the effects of low interest rates.

They also observed that investors are increasingly aware of the importance of ESG investment as enterprises need development strategies that enhances sustainable growth. Climate change is a seriously underestimated investment risk, a strong focus on climate change by investors will fundamentally reshape global financial market. They also called for pragmatic cooperation among countries and jointly shape the international economic system.

Wang Hong, Deputy Mayor of Beijing Municipality, attended the Forum. The Forum was coordinated by Zhao Haiying, Executive Vice President and Chief Strategy Officer of CIC, and participated by representatives from relevant government agencies and leading international investment institutions and advisory companies.