CHINA-ECONOMY: OBOR

Reuters reported on August 23, 2017, that four of China's largest state-owned commercial banks are raising billions to fund investment under Beijing's "Belt and Road" drive, bolstering ambitions to to revive Silk Road trade routes and internationalize the yuan. The China Construction Bank Corp (CCB) ), the country's second-biggest bank by assets, has been conducting roadshows to raise at least 100 billion yuan ($15 billion) from onshore and offshore investors. The Bank of China (BOC), the smallest of the country's "big four" lenders, aims to raise around 20 billion yuan. Top lender Industrial and Commercial Bank of China Ltd and third-ranked Agricultural Bank of China Ltd are also considering raising Belt and Road funds. CCB and BOC are raising money via their private equity or other investment platforms, as part of a broader central bank push to invest yuan overseas. Funds from offshore investors would be in U.S. dollars,,

(Comment: The fundraising comes less than a week after the government said it would strengthen regulation to reduce risk for domestic firms investing abroad and curb "irrational" Belt and Road investment)







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