China’s ‘big four’ banks raise billions for Belt and Road
State-owned lenders’ fundraising drive comes after Beijing released overseas investment guidelines
As part of Beijing’s efforts to support Xi Jinping’s flagship Belt and Road Initiative and the internationalization of the yuan, China’s largest state-owned commercial banks are raising billions for overseas investments, Reuters reported Tuesday, citing sources close to the matter.
China Construction Bank is aiming to raise at least US$15 billion, while Bank of China has set a goal of around US$3 billion. Industrial and Commercial Bank of China and Agricultural Bank of China are both considering raising funds, the sources said.
Private spending on overseas M&A deals has dropped significantly amid an ongoing crackdown on outbound capital flows, but investment in countries involved in the Belt and Road Initiative has already reached US$33 billion this year. The number compares with just US$31 billion for all of 2016.
China’s State Council issued new guidelines for overseas investment last Friday, limiting M&A deals in certain industries while encouraging investment related to Belt and Road.