The Highlights of “3J Plan”

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  When the coordinated development plan of Beijing, Tianjin and Hebei (the three places are respectively called Jing, Jin and Ji for short. So this plan is called “3J Plan” from now on) comes out, Langfang, a city of Hebei Province, took a step forward in the financial cooperation of these three places.
  “Finance is the essence of the economic development. Presently, the finance of Langfang is still far behind the required level in terms of support and service. How to make full use of financial resources is an important task for us to be involved in the 3J plan,”said Wang Xiaodong, CPC chief of Langfang.
  He spoke of this in a forum where the government of Langfang signed several contracts valuing 2.87 billion yuan in total with several financial and data enterprises.
   The Financial Map of 3J
  “In the financial cooperation, the most important thing is that Beijing, Tianjin and Hebei should have a clear understanding of their own functions and positions,” said Cao Yuanzheng, chief economist of Bank of China.
  For the positioning of the three places in the financial cooperation, Li Bo, deputy director of Hebei Provincial Government had a clear definition:“Beijing is the formulator of the plan and the gathering of headquarters of financial institutions; Tianjin made impressive progress in financial innovation and equity trade in recent years; and Hebei is facing new opportunities brought by the industrial transformation and upgrade, environmental protection and urban development. In the sector of finance, Hebei is far behind Beijing and Tianjin”.
  In recent years, the financial industry has become an important pillar for the economic development of Tianjin. The modern financial services, represented by the finance lease and equity funds have formed a cluster in this city and got systematic development, which lead to the initial development features of Tianjin’s financial industry.
  Li Keqiang, deputy director of the Financial Council at the Tianjin Municipal CPC Committee, said that the valueadded of financial industry of Tianjin amounted to higher than 120 billion yuan in 2013. The finance contributed to 17.4% of the total output of the service industry and accounts for 8.4% of the GDP of this city. The contribution rate of finance to economic growth increased to 13.5% as well.
  “The open-up of the Binhai New Area, along with the government-issued guideline, is the key to the fast development of financial industry in Tianjin,”Li said. “Hebei is now in the process of industrial transformation and upgrade. There is still a great potential for the development of its financial industry.”   In his opinion, the three places have their own advantages and they should make full of these advantages to find the best cooperation pattern for the all-win result.
  Cao Yuanzheng believes that the development plan could not be formed without the established functions of positions of each place. “Beijing is a decision-maker and a management center in the financial industry, but it is not a market. That role belongs to Tianjin. As for Hebei, especially Langfang, its role is a bridge between the manage- ment and the market.”
   Top-level Design Required for Financial Integration
  Huo Xuewen, CPC chief of the Beijing Municipal Administration of Finance, think that the different features and functions of Beijing, Tianjin and Hebei can supplement each other, laying a solid foundation for the codevelopment of the financial industry. Actually, the financial integration is progressed actively.
  Li Bo put forward two suggestions about incorporating Hebei into the financial development of Beijing and Tianjin and realizing the co-development of financial industry of the three places.
  “The top-level design should be the first job to be finished. Hebei should do well what it should do under the general plan of the central government. We need to find our own position and the relation with Beijing and Tianjin. We should respect the principles and actively get involved by coordinating the financial factor market, financial institutions, backstage services, and financial services with the ones in Beijing and Tianjin. Secondly, we should make full use of the two capital markets in Beijing and Tianjin for the industrial upgrade of Hebei.”
  Li Keqiang with the Financial Commission also believes that the toplevel design of the central government is an indispensable condition for the financial cooperation of the three places since the reform to finance and the flows of factors and capital need to be regulated by the central government.
  In addition, Li Keqiang said that the financial industry should be used to serve the real economy. There is no tolerance for the blind development of financial industry out of the reality of the industrial structure. It is necessary and good to hook the finance to the industry in a good manner. This requires well-established development policies, as well as the effective social credit function, proper financial talents, decent information sharing system and appropriate risk prevention.    Langfang’s Efforts in Tech-based Finance
  Speaking of Langfang, the said bridge between Beijing and Tianjin, Cao Yuanzheng called its finance the service for the financial industry. It needs to think of providing the services of training, tech support, backstage service and big data.
  The financial and tech companies that signed the contracts with Langfang just want to make use of this role of Langfang.
  Jusfoun is a company to provide financial data services and is among the companies having signed contracts with Langfang. Its executive president Wang Sanren said that the land supply, power supply, talent training and other factors give this city a great potential for the big data services.
  The financial industry is mainly divided into two places: the financial service at the front end and the financial technology at the back end. In 2013, China invested over 400 billion yuan in total into the financial technologies. In the entire industrial chain, the investment into and development of big data have the highest development pace.
  In Langfang, the State Computing Network Emergency Coordination Center has already installed 135 mainframes and is going to add 182 new ones in 2014. The other data-related financial institutions are also going to move part of them into this city.
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