Chinaâ€™s CITIC to Put in US$113 Bn to Construct One Belt One Road Initiative
Published By : 24 Jun 2015 | Published By : QYRESEARCH
China’s state-owned enterprise CITIC Ltd. (earlier known as the China International Trust and Investment Corporation) announced on Wednesday that its securities, banking, construction, and trust units will together be investing US$112.79 billion (over 700 billion yuans) to encourage the construction of China’s initiative “One Belt, One Road”.
Around 300 projects will be involved in the investments stretching from Singapore to Turkmenistan.
With its “One Belt, One Road” initiative, China’s target is to develop a modern route for trade that will be called the 21st Century Maritime Silk Road and the Silk Road Economic Belt.
The various projects that are included as part of the plan comprise internet networks, networks of highways, railways, power grids, and oil and gas pipelines, maritime and other infrastructure connections that range across west, central, and south Asia right up to Russia, Greece, and Oman, extending China’s links to Africa and Europe.
Xi Jinping, China’s President, said earlier in March that he hoped that the annual trade of China with nations that formed a part of the “One Belt, One Road” project would exceed US$2.5 trillion in a span of 10 years.
China’s CITIC Bank Corp has over four trillion yuan in the form of assets and will be financing more than 200 projects with over 400 billion yuan. These projects, with the help of its local branches, will include areas such as energy, infrastructure, culture, and agriculture.
The CITIC Bank Corp will also be setting up and managing a fund for the “One Belt, One Road” project, with 20 billion yuan for the initial phase. This will help in financing companies in China to expand overseas and in participating in various public private partnerships and mergers and acquisitions.
The CITIC Bank fund will be increased to 100 billion yuan over the next five years to provide finance for various projects in the region.