Bund Summit: Navigating a changing world through connectivity

The sixth Bund Summit convened on Thursday in Shanghai, one of the world's financial hubs, at a time marked by global challenges such as economic fragmentation and climate change.

Over three days, leading financial experts and academics gather to discuss strategies for navigating a changing world. While the World Bank projected the global economy to experience a "soft landing" in 2024, with growth estimated at 2.7 percent, the pace of growth remains well below pre-pandemic levels.

"Countries should avoid a vicious cycle of trade restrictions and instead pursue further integration where possible," said Anna Bjerde, the World Bank's managing director for operations.

Jean-Claude Trichet, former president of the European Central Bank, said that global value chains have contributed tremendously to the prosperity of the global economy over the past three to four decades. He added that, Europeans, in particular, are opposed to the concept of decoupling.

Ashley Bacon, chief risk officer at JP Morgan Chase, echoed this sentiment, arguing for increased connectivity. The bank, with a century-long presence in China, views the country's ongoing market access reforms as immensely beneficial. China's commitment to opening up and deepening reform was reaffirmed at the third plenary session of the 20th Communist Party of China Central Committee in July.

Bacon also stressed the need for global cooperation in the transition to a low-carbon economy, a sector that requires $4 trillion to $6 trillion in annual investment in the near future. The re-establishment of a joint working group between China and the U.S. underscores the importance of multilateralism in addressing climate challenges, said Bacon.

Renminbi Internationalization

Paul Chan, financial secretary of Hong Kong Special Administrative Region, outlined the city's growing role as a bridge between Chinese and global capital markets. Hong Kong, already the world's largest offshore Renminbi hub, aims to further strengthen its position by offering a wider range of Renminbi products and risk management tools.

Huang Qifan, advisor to China Finance 40 Forum (CF40), clarified that China's promotion of Renminbi internationalization is not intended to replace the U.S. dollar but to maintain the stability of global industrial and supply chains. Huang predicted that the proportion of Renminbi in global payment settlement will increase by one percentage point annually, reaching around 17 percent by 2035, up from the current 4.7 percent.

The sixth Bund Summit is jointly organized by the CF40 and China Center for International Economic Exchanges. CGTN is a strategic media partner for this year's event.