SCODA Accelerates Building of a Financial Gateway for Going Global
The financial development of SCODA has seen substantial progress recently. Xinjiang Asia-Europe Exchange Co., Ltd. has set up a wholly-owned subsidiary Qingdao Asia-Europe Trading Service Co., Ltd., which was officially put into operation at the core area of SCODA in the afternoon of August 9. Xinjiang Asia-Europe is a branch of the National Commodity and Raw Materials Exchange of Uzbekistan (hereinafter referred to as "Uzbekistan Mercantile Exchange") in China, and the operation of Qingdao Asia-Europe also marks the official operation of the Uzbekistan Exchange in the core area of SCODA. At the same time, Belarusian Universal Commodity Exchange, Uzbekistan Tashkent BMB Trading Group and other projects have simultaneously settled in. In addition, the number of qualified domestic limited partner (QDLP) pilot qualifications in SCODA has seen new breakthroughs, and the second QDLP fund pilot in SCODA has been officially settled, with a pilot quota of USD 100 million.
Since the start of construction, SCODA has actively promoted the opening-up in finance by building a cross-border credit demonstration platform of "Credit SCO", promoting the implementation of "SCO · Bank Customs Pass" guarantee business, and setting up a compensation capital pool of "SCO · Exchange Rate Guarantee" and other financial innovation means, so as to safeguard enterprises to go global.
New Cross-Border Trading Platform among SCO Countries Established
As one of the four largest exchanges in the world, the Uzbekistan Exchange was established by the state of Uzbekistan to provide enterprises with a full range of commodity trading services based on international trading processes. The main business of the exchange is the export of Uzbekistan's materials such as cotton, non-ferrous metal and chemical fertilizer, and the import of building materials, light textiles, machinery, electrical appliances, food and other commodities needed by Central Asian countries.
At the end of last year, the Qingdao Branch of Uzbekistan Exchange was established in Qingdao. Qingdao Asia-Europe is the operator of the Qingdao Branch of Uzbekistan Exchange. After more than 7 months of trial operation, the Qingdao Branch of Uzbekistan Exchange has been put into operation in SCODA. Based on the SCODA, the branch of Uzbekistan Exchange will further facilitate the coordination between the SCODA and Shanghai, Guangzhou, Urumqi and other provinces and cities, achieving connectivity in talents, resources, projects, finance and other aspects, and giving full play to the function of the platform and the advantages of SCODA in policy, industry and logistics. It will become a cross-border trading platform integrating multi-functional and comprehensive services such as import and export product trading, technology transfer and service, product information release and display, warehousing and logistics, and corporate training. Meanwhile, SCODA will actively explore a new system for trade in services and establish a China-SCO Exchange Alliance, thus integrating the trading platforms.
"At present, we have introduced the Uzbekistan Exchange, the Belarusian Universal Commodity Exchange, Russia's St. Petersburg International Commodity Exchange and the Asia-Europe International Cross-Border Commodity Trading Platform, connecting high-end supply chain resources in energy, bulk commodities and industrial raw materials from SCO countries and countries along the Belt and Road, and promoting the high-quality development of regional trade and economic cooperation." said Zhang Hongping, Chairman of Xinjiang Asia-Europe Exchange. Among them, the Belarusian Universal Commodity Exchange is one of the largest commodity exchanges in East Europe. It mainly assists Belarusian enterprises to export products, helps foreign companies enter the Belarusian market, and sells products such as metal products, timber products, agricultural products, industrial and consumer goods.
It is reported that Qingdao Asia-Europe is also actively promoting the coordinated development of SCODA and SCO countries in such areas as sister city cooperation, culture and tourism, personnel exchanges and infrastructure construction. Thanks to the introduction of Qingdao Asia-Europe, the SCODA signed a Memorandum of Friendly Cooperation with Jizzakh Free Economic Zone in Uzbekistan. In last December, the Qingdao-Uzbekistan Cross-Border E-Commerce Training Exchange and Uzbekistan Exchange were both inaugurated. In this February, a photography exhibition themed on Qingdao was held in the city of Jizzakh. In April, Qingdao Asia-Europe and Tashkent BMB Group established the first China-Uzbekistan offshore incubator, strongly boosting the international exchanges and cooperation between China and Uzbekistan.
Scale of Two QDLP Funds Reach USD 250 Million
In addition to the cross-border exchange, the Qualified Domestic Limited Partner (QDLP) pilot has also become a highlight of the financial opening-up for the SCODA.
QDLP fund, namely the private fund product subscribed by QDLP investors, refers to the limited partnership fund initiated and established by the QDLP fund manager and raised from QDLP investors within the approved quota, which raises RMB capital in China and invests it in the overseas market.
In October last year, the SCODA and China-Russia Energy Investment Private Equity Management (Qingdao) Co., Ltd. initiated the establishment of an overseas investment fund with RMB or foreign exchange for overseas investment, with a pilot quota of USD 150 million. At present, it has participated in the investment of the 100MW wind power project of Zhanatas in Kazakhstan. Through two-way investment and financing in energy and related fields, it has further opened up channels for overseas investment of domestic funds and enriched the modern financial business form of SCODA.
Recently, the second QDLP pilot fund in SCODA has been officially landed, as initiated and established by Zhejiang Quantitative Silicon Valley Holding Co., Ltd., which is planned to be issued in phase Ⅰ and phase Ⅱ. The investment objects focus on the equity and bonds of overseas non-listed companies, mainly investing in carbon neutrality and new energy enterprises.
So far, two QDLP funds have been launched in the SCODA, with a total pilot quota of USD 250 million, which has built a bridge for domestic funds to invest "overseas" and could better help Chinese enterprises "go global".
Lin Changhua, Deputy Director of the Administrative Committee of the SCODA, said that after the launch of the second QDLP fund in SCODA, the fund can better help Chinese enterprises "go global", assist the merger and acquisition of domestic and foreign projects focusing on advanced technology and industrialization, and boost the development of carbon neutrality, new energy commercial transportation and equipment industries. She mentioned that the initiator of the fund, Zhejiang Quantitative Silicon Valley Holding Co., Ltd., will also jointly establish a carbon neutrality new energy industry fund with the SCODA, further promoting the development of low-carbon economy in Qingdao through two-way investment of domestic and foreign funds.
The latest statistics show that, in the first seven months of this year, the total import and export volume of the SCODA is expected to reach 21 billion yuan, up by 38.3% year on year, among which the import and export volume of SCO countries is expected to reach 4.3 billion yuan, up by 86.2% year on year.
"We will create an efficient and convenient business environment, encourage financial enterprises to take root and grow in SCODA, and carry out cooperation with SCO countries in wider areas, at a deeper and higher level." A person in charge of the Administrative Committee of SCODA said that the SCODA will further focus on the project attraction targets, explore the innovation of economic and trade cooperation featuring market-oriented operation, expand new paths of local exchange and cooperation in the international market, and help to build a new platform for Belt and Road international cooperation.