Bank of China Johannesburg Branch holds webinar on China’s economy

On Nov. 24, the Bank of China Johannesburg Branch held a webinar entitled "New Options, New Opportunities – China Economy & Rates Strategy," which focused on the significance of adopting the Renminbi as a reserve and investment currency among sovereign institutions in Africa as well as underscoring the unique advantages and development prospects for the Renminbi money market in the post-pandemic era. 

Photo shows the Bank of China Johannesburg Branch in Johannesburg, South Africa.

Since the establishment of diplomatic ties in 1998, South Africa and China have been working together for 23 years and have made historic strides from a bilateral partnership, to a strategic partnership and then towards a comprehensive strategic partnership, said Zhao Zhongyi, Minister Counsellor of the Embassy of the People's Republic of China in the Republic of South Africa. Especially in recent years, the continued development of economic, trade and financial cooperation between South Africa and China has maintained robust momentum. In 2020, China remained South Africa's largest trading partner, export market and source of imports. It is hoped that China-Africa and China-South Africa financial institutions can continue to work together to deepen their cooperation to overcome the challenges arising during the pandemic, while seizing and creating new development opportunities in the post-pandemic era.

China's rapid economic growth and the continuous expansion of its market have attracted the attention of the world, with the country gradually having become a popular option for international investors, Wang Huabin, General Manager of the Financial Institutions Department of the Bank of China Head Office in Beijing, noted in his speech. As one of the largest bond lead underwriters in China, the Bank of China has the most comprehensive global service network, while having ranked first in the international market for cross-border debt financing for many consecutive years in a row, not to mention being a major provider of cross-border Renminbi services. The Bank of China will, as always, provide professional financial services to investors and enterprises in South Africa and across the African continent, and build the comprehensive services of the Bank of China into an important link for China-South Africa and China-Africa economic and trade cooperation.

Suzette Vogelsang, the head of Prudential Authority’s Banking, Insurance, and FMI Supervision Department, mentioned that the Bank of China Johannesburg branch was the earliest Chinese bank to be established in South Africa and that its total assets have since grown to achieve a scale now ranking at the top among foreign banks operating in South Africa. Vogelsang also stressed the importance of financial stability for socio-economic development.

Zhou Shuo, Chief Representative of the Africa Office of People’s Bank of China, introduced the layout of the People's Bank of China outside the Chinese mainland and its present situation regarding cooperation with national regulators, while at the same time expressing her best wishes for the Bank of China Johannesburg Branch to continue endeavoring towards providing better and more comprehensive services, in this way playing an increasingly more important role across the African continent.

Nicholas Mukasa, Director of Financial Markets at the Central Bank of Namibia, expressed his thoughts during a panel discussion that in view of the overall performance of China during the difficult period of the pandemic, and the country’s resiliency and anti-inflation capabilities in the post-pandemic era, the Renminbi market is set to become one of the strategic investment markets for the Central Bank of Namibia.

Economists and business experts from the Bank of China Head Office and BOC International delivered keynote speeches on both the world’s and China’s macroeconomic positions, as well as highlighting opportunities for international investors to reshape their portfolio structure through investments in the China interbank bond market.

The event also aimed to provide in-depth analysis and explanations on relevant topics such as industrial performance, opportunities under the “dual-circulation” development paradigm, the development of China's bond market, and future market investment opportunities.

Experts from major central banks in Africa shared their views during a panel discussion. This webinar received extensive attention from many African sovereign institutions, including the South African Reserve Bank, Central Bank of Kenya, and Central Bank of Namibia. Over 100 investors from more than eight countries in the African region and more than 40 multilateral sovereign financial institutions, along with mainstream commercial financial institutions, attended the webinar online.