The Chinese government is building Xinjiang as a financial center on the silk road economic belt. CCTV's reporter is in Xinjiang to observe some of the progress on the front.
This is Kashgar. Located on the western border of Xinjiang. It's home to a host of companies with cross-boarder operations. Local banks have launched direct trading of the yuan with neighboring countries. Bank of China for example, has rolled out yuan trading with Kazakstan, Pakistan and Tajikistan.
Head of Bank of China's Xinjiang branch, Dou Bo, said, "This year we launched direct trading with Turkey's Lira. Yuan forex trading with countries along the belt and road region will help the internationalization of the rmb, and help Chinese businesses go global."
Cross-border yuan loans are making business more convenient. China Construction Bank launched a service last December that allowed companies in Kashgar to borrow yuan in neighboring countries. Kashgar's businesses say they are feeling the benefits.
Deputy general manager of Xinjiang Huadian Kashgar, Wang Lei, said, "This February we borrowed 100 million yuan. In July we borrowed 100 million more. The bank charges about 10 percent lower interest. That helps us save costs. The procedure is also simple."
Chinese and international bankers said at a financial forum in Urumqi that Xinjiang is moving towards becoming a financial center that supports the development of the Silk Road economic belt.
Head of econ.unit of Asian Development Bank, Jurgen Conrad, said, "Even with slowing economic growth nationwide, Xinjiang's financial sector has expanded by some 17.3 billion yuan. That's solid 10-percent growth that makes finance a bright spot in this frontier region."
