Silk Road Fund gets up and run­ning with key team in place

China Daily (Canada) - - ONE WEEK FREE SMART EDITION - By LI XIANG lix­i­ang@chi­nadaily.com.cn

China’s $40 bil­lion Silk Road Fund is mov­ing for­ward steadily as its man­age­ment team has taken shape.

Wang Yanzhi, an of­fi­cial with the coun­try’s for­eign ex­change reg­u­la­tor, has been named the gen­eral manager of the fund, ac­cord­ing to a re­port by the Chi­nese busi­ness mag­a­zine Caixin.

Wang, known for his ex­pe­ri­ence in man­ag­ing the coun­try’s for­eign ex­change re­serves, is cur­rently the direc­tor of the en­trusted loan of­fice at the State Ad­min­is­tra­tion of For­eign Ex­change.

JinQi, 59, whois the as­sis­tant gover­nor of the Peo­ple’s Bank of China, the cen­tral bank, will be the fund’s chief ex­ec­u­tive, while Zhu Surong, gover­nor of the Urumqi branch of the PBOC in the Xin­jiang Uygur au­ton­o­mous re­gion, will be one of the board mem­bers of the fund, ac­cord­ing to Caixin.

The fund, an­nounced by Pres­i­dent Xi Jin­ping in Novem­ber, is part of China’s na­tional strat­egy to re­vive the land-based and mar­itime Silk Roads by fi­nanc­ing ma­jor in­fra­struc­ture projects along the cen­turies-old trad­ing routes.

It has drawn wide in­ter­na­tional at­ten­tion as it is by far the largest fund China has ever pro­posed to fi­nance mul­ti­lat­eral projects in the Eurasian eco­nomic cir­cle.

About 65 per­cent of the fund will come from the coun­try’s nearly $4 tril­lion for­eign ex­change re­serves.

China In­vest­ment Corp, the coun­try’s sovereign wealth fund, will hold 15 per­cent stake in the Silk Road Fund. Two other State-owned fi­nan­cial in­sti­tu­tions — the Ex­port-Im­port Bank of China and China Devel­op­ment Bank Cap­i­tal Co — will hold the rest of the stake, ac­cord­ing to pre­vi­ous me­dia re­ports.

The fund has been viewed as a good al­ter­na­tive to the China-led Asian In­fra­struc­ture In­vest­ment Bank for fi­nanc­ing in­fra­struc­ture projects such as high-speed rail­ways, air­ports and roads in Asia.

An­a­lysts have said that the fund will help ex­pand in­ter­na­tional mar­kets for the Chi­nese in­dus­tries in­clud­ing con­struc­tion, equip­ment man­u­fac­tur­ing, util­i­ties, high-speed rail­way, oil and en­ergy, some of which are strug­gling with ex­cess ca­pac­ity at home.

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