This new Chinese fund of 10 billion euros to invest in Central and Eastern Europe

by bold-lichterman

  • Supported by the government, this fund plans to raise 50 billion euros to finance projects in sectors such as high-tech manufacturing and consumer goods.
  • Beijing is counting on this region, located on the “new silk road” to China, to develop new export markets for its companies.
  • In 2015, Chinese growth slowed to 6.9%, its lowest level in 25 years.

The Industrial and Commercial Bank of China has announced the creation of an investment fund of 10 billion euros, according to information relayed by Reuters. This will make it possible to finance projects in Central and Eastern Europe. This fund will be managed by Sino-CEE Financial Holdings, a company created by the Industrial and Commercial Bank of China earlier this year. China Life Insurance and Fosun Group will also be involved in the management of the fund.

Sino-CEE Financial Holdings was officially launched on November 5 by Chinese Premier Li Keqiang during his visit to Riga, Latvia, for the fifth summit of heads of government of China and European countries Central and Eastern (CEEC).

50 billion euros in project financing

Supported by the government, the fund plans to raise 50 billion euros to finance projects in sectors such as high-tech manufacturing and consumer goods. Although the fund enjoys the support of the Chinese authorities, the Industrial and Commercial Bank of China assures that it will operate on the principles of a company and be guided by the market.

Initially, it will primarily target Central and Eastern Europe. However, the scope of the fund could be extended to the rest of Europe and other regions to develop cooperation between China and Central and Eastern Europe. Last year, Gao Yan, Chinese vice-minister of commerce, said Chinese companies had invested more than $ 5 billion in countries of central and eastern Europe.

Beijing is counting on this region, located on the “new silk road” to China, to develop new export markets for its companies while the slowdown in the Chinese economy is confirmed. In 2015, Chinese growth slowed to 6.9%, its lowest level in 25 years.

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