Renminbi conference in Budapest focuses on Hungary-China financial cooperation

BUDAPEST, May 4 (Xinhua) -- The Budapest Renminbi Initiative Conference, an annual event aimed at promoting cross-border economic activity and broadening the range of investment and financing sources in Hungary, was held for the seventh time here on Thursday.

The participants focused on financial interconnectivity and a green transition, highlighting the opportunities of central banks in environmentally sustainable financial transformation and the role of the renminbi in the Central and Eastern European (CEE) region.

The conference was attended by high-ranking officials, bankers, economists and business leaders from Hungary, China and the rest of the world.

Mihaly Patai, deputy governor of the National Bank of Hungary (MNB), emphasized the significance of financial cooperation between Hungary and China. "Our central bank was among the first ones in Europe to conclude a swap agreement with the People's Bank of China in September 2013," he said.

The two countries' financial systems are becoming increasingly interconnected, he said, with the Bank of China operating in Hungary for many years now, and the China Development Bank and China Construction Bank opening their Budapest offices recently.

According to Patai, Budapest, alongside Warsaw, has become a financial hub in the CEE region thanks to the presence of Chinese banks and the financial innovations they bring from China.

Yang Chao, charge d'affaires ad interim of the Chinese Embassy in Hungary, highlighted the importance of the internationalization of the renminbi. He said that the global financial landscape was undergoing major adjustments, and the international monetary system was accelerating towards multi-polarity.

"The internationalization of renminbi provides a reliable new choice for countries around the world" by injecting more stability into the volatile international financial market and creating more new opportunities for the recovery of the world economy, he said.

Yang recalled that this year marks the 20th anniversary of the comprehensive strategic partnership between China and the European Union (EU), and said that China is willing to engage in mutually beneficial cooperation with the EU in various fields.

Xu Chen, chairman of the Bank of China (Europe) S.A., said he also appreciated the mutually beneficial cooperation between Hungary and China.

In the post-pandemic era, creating a more balanced and diversified global financial system is crucial, and economic decoupling benefits neither side, Xu said.

As the economic and trade relations between China and the EU continue to strengthen, businesses on both sides benefit from stability and long-term prosperity. "China and Europe have shared interests in these green topics and have a high degree of complementarity in transforming the world into an open and green one," Xu added.

Li Kexin, chief executive officer of the Bank of China (Central and Eastern Europe) Ltd., focused on the CEE region's importance in the world's financial landscape.

He said that the region links the European market with the Belt and Road Initiative, and there are huge opportunities for further cooperation and development between China and the CEE region in green project investment, green finance and the digital economy.