Seize the Opportunity of OBAOR Strategy.docVIP

Seize the Opportunity of OBAOR Strategy On the backdrop of China’s economy entering into the “new normal”， it is of course inevitable course that enterprises will shift developmental focus from “introduce in” to “go out”， with the mainstream of capital flows switching from capital inflows to capital outflows. Over the course， China will take advantage of foreign exchange reserves to drive global growth， digesting excess capacity through the capital output while at the same time promoting the internationalization of the yuan. In 2013， China’s President Xi Jinping put forwards the strategy of One Belt and One Road （OBAOR）， or the Silk Road Economic Belt and 21 Century Maritime Silk Road， which spans through the economic development of more than 40 countries， involving 60% of the global economic aggregate. By far， China has injected a huge amount of capitals into Silk Road partners to help them to build infrastructure. The establishment of Asian Infrastructure Investment Bank and Silk Road Fund means that more cash will be injected into countries along the Silk Road. Therefrom， the strategy of One Belt and One Road will become the solid foundation to the Asia-pacific connectivity. It is exactly the right time to step up the progress of the strategy， in view of insufficient domestic demand， excess capacity and over surplus of foreign exchange assets. Besides， emerging market countries and less developed countries still lack infrastructure construction， while developed countries which are mired in sovereign debt crisis cannot drive global growth. Therefore， China’s move to give full play to foreign exchange reserves aiming at “going out” is viewed as a multi-win strategy. With the implementation of the strategy of “One Belt and One Road”， more and more Chinese enterprises will have opportunities to participate in overseas infrastructure construction， including ports， railways， highways， and energy channels， etc. From the perspective of Chinese capital market， the first b