Chinese banks gearing up for Belt and Road investment

Chinese banks gearing up for Belt and Road investment

The government is increasingly scrutinising global investment after some big-money deals in recent years.

The other members of China's so-called "four big banks", Industrial and Commercial Bank of China and Agricultural Bank of China, are also planning similar funds.

Beijing is trying to contain overseas deals after some extravagant purchases in recent years, but while private spending on deals has slumped, acquisitions by Chinese companies in countries that are part of the Belt and Road initiative are soaring, totalling $33 billion as of mid-August. They could not be identified as they are not authorised to speak to the media.

The people said CCB would raise US dollars for the offshore portion of the fund and yuan from onshore investors.

That compared with $31 billion for all of 2016, Thomson Reuters data showed. Funds from offshore investors would be in USA dollars, the people said.

The four lenders and the People's Bank of China did not respond to requests for comment.

Comprising land and maritime trade routes connecting China with Central Asia, South East Asia, Australia and New Zealand, the Middle East, Africa and Europe, the overall infrastructure investment is expected to reach US$900 billion though only a fraction of this has been pledged so far.

Senior China economist at ANZ, Betty Rui Wang, said yuan funds for overseas use would ease Chinese corporate concerns about normal funding channels being restricted by capital controls.

Speaking at the Belt and Road Forum for Health Cooperation in Beijing, he said the proposal from China's President Xi for a "health silk road" was "visionary" and would strengthen and renew ancient links between cultures and people. However, there would still be foreign exchange risk, she said.



Related Posts

Sophomore Tyler Huntley named Utah starting quarterback
Former Cottonwood High star and Alabama transfer Cooper Bateman is listed as the third string quarterback on the depth chart. Last season as a freshman, Huntley appeared in six games and attempted just seven passes for 60 yards.

Institutional Ownership And Insider Trading At CVS Health Corporation (CVS)
Riverpoint Capital Management Llc increased Facebook Inc (NASDAQ:FB) stake by 4,258 shares to 22,750 valued at $2.62M in 2016Q4. Several other hedge funds and other institutional investors have also recently made changes to their positions in the company.

Hyundai to Make Santa Cruz Pickup Concept a Reality
But instead of only introducing more bland crossovers or SUVs, it's going with a goddamn small truck, according to Reuters . O'Brien, vice president of corporate and product planning at Hyundai's US operations.

Owner unhappy after killing of runaway Littleton bull
When police arrived it had moved off the street, and officials contacted the animal's owner, Terry Den Besten. Police and the owner of an escaped bull had to put the animal down Sunday when it endangered traffic.

James Brokenshire to hold talks in Dublin tomorrow with Simon Coveney
Ultimately, it is for Northern Ireland's political parties to find a way to make this work", Mr Brokenshire said in a statement. Mr Coveney also said that sufficient progress on the future of the Irish border has not been made during Brexit talks.

Thirty Seconds To Mars have finally released some new music
The band's last album Love, Lust, Faith and Dreams was released in 2013, and the group poked fun at their long absence with a amusing press release.

Lithuania takes delivery of United States gas to cut reliance on Moscow
The rest will be imported via a gas pipeline from Russian Federation . Off-topic, inappropriate or insulting comments will be removed.

Vítima portuguesa morre no atentado de Barcelona
Uma portuguesa morreu na sequência do atentado terrorista de Barcelona e uma outra mulher de nacionalidade lusa está desaparecida. O avião que transportou os corpos da avó e neta que morreram no atentado nas Ramblas, em Barcelona, já aterrou em Portugal.

JA Solar Holdings Co., Ltd. (JASO) - Watch List stock
IBD's TAKE: The outlook is improving for solar companies as solar-panel prices have firmed up on stronger demand. The stock tapped a 52-week high of US$148.84 while the mean 12-month price target for the shares is US$152.5.

PGGM Investments Has $189.09 Million Position in UnitedHealth Group Incorporated (UNH)
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. The firm owned 1,019,771 shares of the healthcare conglomerate's stock after selling 125,378 shares during the period.

© 2015 ExpressNewsline. All Rights reserved.