11.12.2014 - With New Fund, China Hits a Silk Road Stride
China’s ambitious plan to expand trade links westward into Central Asia in the spirit of the ancient Silk Road is taking shape now that the government has decided to shift foreign currency into a special fund. The State Council will tap the nation’s foreign currency reserves for about 65 percent of a new US$ 40 billion infrastructure and trade financing mechanism called the Silk Road Fund. The rest of the fund’s cash will come from the government’s sovereign wealth fund, China Investment Corp., and two policy banks, the Export-Import Bank of China and China Development Bank Capital Co. (CDB), sources said. CIC’s share of the tranche is 15 percent, while the banks will contribute 15 percent and 5 percent, respectively. Future injections may be ordered if investment demand warrants...............................................Full Article: Source
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