BOFIT Weekly Review 2015/08
China’s New Silk Road Fund opens for business
This week saw the official launch of a fund to finance projects of China’s “New Silk Road” initiative. The initial capitalisation of the fund is about $40 billion. The funds come from China’s foreign currency reserves, key policy funds and the China Investment Corporation, Export-Import Bank of China and China Development Bank.
The purpose of the fund is to provide financing and financial services for projects that support China’s plans to build a “new silk road” between Southeast Asia and Europe for trade on both land and sea. China hopes this mega-project increases cooperation among the countries in the Silk Road belt, boosts Chinese FDI outflows and promotes international use of the yuan.