China’s New Silk Road Fund
In addition to the BRICS Bank and the just formed Asian Infrastructure Investment Bank, China is gearing up for its 100 billion RMB New Silk Road fund to build transport and pipeline infrastructure along traditional silk road routes connecting China-Central Asia-Middle East-Europe. China is certainly giving US-backed multilateral financial institutions a run for the money. Ratcheting up competition will only benefit infrastructure building across the vast Asian-European continents.
China is planning a US$16.3 billion (HK$127.14 billion) fund to finance construction of infrastructure linking its markets to three continents as President Xi Jinping pushes forward with his ideas to revive the centuries-old Silk Road trading route.
The fund, overseen by Chinese policy banks, will be used to build and expand railways, roads and pipelines in provinces in the mainland that are part of the strategy to facilitate trade over land and shipping routes.
More policies will be rolled out soon to encourage mainland lenders to finance infrastructure in countries along the route connecting China to Europe. The New Silk Road plan envisions an economic cooperation bloc to the Mediterranean.
– Bloomberg
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