CMIG bets big on Belt and Road drive

China Daily (Canada) - - BUSINESS - By LUOWEITENG in Hong Kong sophia@chi­nadai­lyhk.com

A con­sor­tium of fi­nan­cial in­sti­tu­tions in Asia — led by China Min­sheng In­vest­ment Group — said it is bet­ting big on the Belt and Road Ini­tia­tive and will spend many bil­lions of dol­lars to get on­board the in­vest­ment boom.

CMIG, the coun­try’s big­gest pri­vately owned in­vest­ment con­glom­er­ate, said it had teamed up with its re­gional peers to set up a fund worth $10-$15 bil­lion in HongKon­glast week, in their quest for first-mover ad­van­tage in the Belt and Road push.

The strate­gic part­ners com­prise a long list of wellestab­lished names across the re­gion.

They in­clude Zhong­tai International in the Chinese main­land, Hong Kong-based SunHung Kai, AMTD Group and Black­Pine, Ja­pan-based Orix Corp, South Kore­abased Mi­rae As­set Global In­vest­ments and In­doChina Cap­i­tal from South­east Asia.

“Such a super part­ner­ship, led by CMIG, is look­ing to tap the po­ten­tial­ly­hugeop­por­tu­ni­ties com­ing from the mas­sive fund­ing gap in Belt and Road coun­tries and re­gions,” said Calvin Choi, se­nior as­sis­tant pres­i­dent of CMIG.

“Part­ners would cer­tainly be better off in­vest­ing in groups rather than go­ing it alone,” he said.

“By re­duc­ing risks and im­prov­ing fundrais­ing ef­fi­ciency, even­tu­ally this helps part­ners find out promising projects that best fit in with their in­vest­ment ex­per­tise.”

Typ­i­cally, fi­nan­cial tech­nol­ogy, high-tech and other emergingin­dus­tries arewhere the new fund would keep its eyes trained, Choi noted.

Though he didn’t re­veal a time­line for the first round of fundrais­ing, Choi said they

Such a super part­ner­ship is look­ing to tap the po­ten­tially huge op­por­tu­ni­ties.”

would “go with the tides”.

The new fund is based in Hong Kong, a choice that high­lights the fi­nan­cial hub’s edge as the “super con­nec­tor” and gate­way to the mas­sive main­land market, he added.

Lawrence Chu, founder and man­ag­ing part­ner of Black­Pine Pri­vate Equity Part­ners, said the Belt and Road Ini­tia­tive had what it takes to be a long-term and sta­ble in­vest­ment chan­nel. E-com­merce and on­line pay­ments in South­east Asia, for in­stance, stood out in a land of op­por­tu­ni­ties that they could not af­ford to miss, Chu noted.

Choi con­firmed the South­east Asia is where the new fund is look­ing, with the North Amer­i­can market com­ing next.

The fund will be work­ing un­der the mech­a­nism of Asia In­sti­tu­tional In­vestor Al­liance, an or­ga­ni­za­tion es­tab­lished by CMIG in Oc­to­ber last year in part­ner­ship with China-ASEAN In­vest­ment Cor­po­ra­tion Fund, JPMor­gan and UBS.

Founded in Shang­hai in 2014 with a reg­is­tered cap­i­tal of 50 bil­lion yuan ($7.3 bil­lion), CMIG com­prises 59 pri­vate en­ter­prises, in­clud­ing Gi­ant In­ter­ac­tive Group backed by bil­lion­aire Shi Yuzhu, Sun­ing Com­merce Group andChina Ocean­wide Hold­ings Group.

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