A Top-down Mechanism Design: Introducing the New Models on Infrastructure Investment & Financing and Credit Rating to Resolve the Financing Difficulty

发布时间:2017-06-07 12:00:24    点击:

 ---Based on the Keynote Speech by Guan Jianzhong, Chairman of Dagong Global Credit Rating Group, on the 8th International Infrastructure Investment and Construction Forum held in Macau on June 2, 2017.

On June 2, Guan Jianzhong, chairman of Dagong Global Credit Rating Group, made a keynote speech on the 8th International Infrastructure Investment and Construction Forum held in Macau on June 2, 2017, sharing with the attendants the latest innovative achievements of Dagong’s creative models on infra investment and financing as well as credit-rating.


Guan Jianzhong is delivering a keynote speech on the forum

Introducing the Top-Down Mechanism Design

In the forum’s panel discussion, under the theme of “the innovation of global infra financing and the role of social capital”, Guan Jianzhong delivered a keynote speech titled “A top-down mechanism design: the new models on infrastructure investment & financing and credit rating to resolve the financing difficulty”, explaining the in-depth creative solutions provided by Dagong in dealing with the prevailing challenges in global infrastructure investment and financing.


According to Guan, one culprit rendering the financing difficulty as faced by many governments around the world, is the heavy reliance on traditional government financing. Lack of the channel and mechanism design to facilitate participation of social capitals further aggravates the infra financing status quo. Following the vein of top-down design, the two models of infra financing and credit rating innovations by Dagong helps to bridge the huge capital demand in the infrastructure sector and the excessive capital supply in the global financial market.


Financing difficulty per se obstructed the smooth transformation of the huge market demand of global infrastructure into benefits palpable to all the related parties, as said by Guan Jianzhong, the underlying reason of which is the absence of standardized calibration for infra credit rating, rendering disconnection between the demand and supply sides of the market.


In introducing the latest innovative progress, Guan Jianzhong reiterated the indispensability for all parties related to infrastructure construction to adhere to the top-down systematic reform, as clarified in the two models provided by Dagong group, highlighting that “the generic solution embedded in the two models will drastically alleviate the global infra financing difficulties…”


Release of the two Models Draw Wide Media Attention


In the two-days long forum, the innovative solution provided by Dagong has brought unprecedented social repercussions, as appraised by the mass media that Dagong is leading both the theoretical and practical zeitgeist in the domains of finance, infrastructure and credit ratings.


During the forum, Guan Jianzhong had been interviewed by reporters from Shanghai Securities News, Phoenix TV, Daily Economic News, 21st Century Business Herald, Today’s China etc.


 Guan Jianzhong is receiving an exclusive interview from the correspondent of 21st Century Business Herald


  Simon Choi, CEO of Dagong Global Credit Co. Ltd, is receiving an exclusive interview from the English Channel of CCTV


Guan said that design of the new model in infra investment and financing could be accomplished via the following three designs: first, the top-down mechanism design, focusing on the design of the business model of infrastructure projects; second, the financing platform design, attracting more capital influx from private sector from around the world into infra construction; third, the design of financing instruments, meeting the demand of cross-border capital flows.


Guan said that the new model in credit rating model should focus on three aspects: first, the setup of a credit risk control system to resolve the information asymmetry between infra risk info and credit rating; second, the digitalization of credit rating to forecast the risk formation by real-time simulation; and third, the overall-course tracing of credit management.


After the meeting, Guan Jianzhong also exchanged with other attendants their in-depth opinions on issues related to global infrastructure investment.


  Guan Jianzhong met with the transportation minister of Myanmar et al.


  Guan Jianzhong, Chairman of Dagong Global Credit Rating Group, and Simon Choi, CEO of Dagong Global Co. Ltd, met with Vice governor of the World Bank