Financial Innovation and Related Reformation in Binhai New Area Professor Biyun Ren Nov. 2007

1. Financial Innovation and Related Reformation in Binhai New AreaProfessor Biyun Ren Nov. 2007 Paris • Tianjin: International Symposium on Development of Urban Construction and Services

2. Contents Ⅰ. What is the related reformation experimental district ? What does It Do? Ⅱ. Financial Functions in Tianjin Binhai New Area . Ⅲ. Several Questions on Financial Functions Paris • Tianjin: International Symposium on Development of Urban Construction and Services

3. Ⅰ 1.1 What is the related reformation experimental district ? • Objective: to push forward the Reforms • Demonstration Effect • A whole range of reforms Paris • Tianjin: International Symposium on Development of Urban Construction and Services

4. Ⅰ 1.2 What Does Tianjin Binhai New Area(BNA) Do? 1.2.1 Encourage the execution of financial reform and innovation in BNA. The important restructuring in financial enterprises, transactions, markets and opening up can be tested in BNA firstly. Paris • Tianjin: International Symposium on Development of Urban Construction and Services

5. 1.2.2 Support land management reform by BNA. alternation of collective construction land in the countryside, land apportionment of proceeds, land supplied and regulated by government. Paris • Tianjin: International Symposium on Development of Urban Construction and Services

6. 1.2.3 Further the opening up of BNA and set up a bonded zone in east frontier of Tianjin. transactions of international transfer, compliment, purchase, carrying trade and export processing, the innovation of Customs Special Supervisor Regional Management System. Paris • Tianjin: International Symposium on Development of Urban Construction and Services

7. 1.2.4 Specific financial and tax policies should be granted to help the development of BNA. • advanced and high-tech enterprises——15% reduction of corporate income tax; • domestically-funded enterprises in BNA——the benchmark for the taxable income can be raised; • accelerated depreciation; Paris • Tianjin: International Symposium on Development of Urban Construction and Services

8. Three New Areas • Pudong New Area in Shanghai role in reform, opening up and independent innovation Paris • Tianjin: International Symposium on Development of Urban Construction and Services

9. Three New Areas • Bohai New Area in Tianjin take reform and innovation initiatives in the financial sector , land administration reform, opening-up, supportive tax policies Paris • Tianjin: International Symposium on Development of Urban Construction and Services

10. Three New Areas • Chengdu New Area in Sichuan Balance urban and rural development and build a new socialist countryside Paris • Tianjin: International Symposium on Development of Urban Construction and Services

11. Ⅰ Conclusion Finance is the first item in BNA’s key emphasis which implies its importance. Paris • Tianjin: International Symposium on Development of Urban Construction and Services

12. Ⅱ. Financial Functions in This Zone.——What can we do? INNOVATION Paris • Tianjin: International Symposium on Development of Urban Construction and Services

13. Ⅱ. Financial Functions in This Zone.——What can we do? 2.1 Direct Finance 2.1.1 Industrial Investment Funds 2.1.2 MBS 2.1.3 Municipal Bonds Paris • Tianjin: International Symposium on Development of Urban Construction and Services

14. Ⅱ. Financial Functions in This Zone.——What can we do? 2.2 Financial Diversified Operation and Regulation System Reform Paris • Tianjin: International Symposium on Development of Urban Construction and Services

15. Ⅱ. Financial Functions in This Zone.——What can we do? 2.3 A More Integrated Financial Institution System 2.3.1 Reinsurance Companies 2.3.2 Agriculture Insurance Companies 2.3.3 Rental Companies 2.3.4 Specialized Banks Paris • Tianjin: International Symposium on Development of Urban Construction and Services

16. Ⅱ. Financial Functions in This Zone.——What can we do? 2.4 Exchange Rate Regime and Foreign Exchange Control Policy Reform Data Resources: State Administration of Foreign Exchange

17. Ⅱ. Financial Functions in This Zone.——What can we do? 2.4 Exchange Rate Regime and Foreign Exchange Control Policy Reform 2.4.1 Bohai Bank 2.4.2 Direct Investment in H.K. Stock Market Paris • Tianjin: International Symposium on Development of Urban Construction and Services

18. Ⅱ. Financial Functions in This Zone.——What can we do? 2.5 Financial Markets 2.5.1 Property Exchange 2.5.2 OTC 2.5.3 Futures 2.5.4 Fund Exchange Paris • Tianjin: International Symposium on Development of Urban Construction and Services

19. Ⅱ. Financial Functions in This Zone.——What can we do? 2.6 Overseas Financial Transaction 2.7 Operations 2.7.1 Credit Card Centre 2.7.2 Clearing and Settlement Centre Paris • Tianjin: International Symposium on Development of Urban Construction and Services

20. Ⅲ. Several Questions on Financial Functions 3.1 Financial Innovation vs. Financial Risk 3.2 Financial Cooperation and Coordination Between Areas 3.3 Financial Innovation vs. Financial Regulation 3.4 Financial Innovation and Human Resources Paris • Tianjin: International Symposium on Development of Urban Construction and Services

21. Thanks! Paris • Tianjin: International Symposium on Development of Urban Construction and Services