China launches $11 billion fund for Central, Eastern Europe
- Wall Street again marks new highs in post-election run
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Restoration Hardware (RH) Tops Q3 EPS by 4c; Guides Well Below the Street
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- After-Hours Stock Movers 12/08: (FNSR) (AVGO) (GLPG) Higher; (XTLY) (RH) (DLTH) Lower (more...)
China's Premier Li Keqiang attends meeting of heads of government Central and Eastern European countries and China in Riga, Latvia, November 5, 2016. REUTERS/Ints Kalnins
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
BEIJING (Reuters) - China has set up a 10 billion euro ($11.15 billion)investment fund to finance projects in Central and Eastern Europe, Industrial and Commercial Bank of China <601398.SS> <1398.HK> said in a statement issued on Sunday.
The China-Central Eastern Europe fund, announced by Premier Li Keqiang during his visit to Riga on Saturday, will be run by Sino-CEE Financial Holdings Ltd, a company established by the bank earlier this year.
The fund is aiming to raise 50 billion euros in project finance for sectors such as infrastructure, high-tech manufacturing and consumer goods, the bank said.
While targeting Central and Eastern Europe, it could extend to the rest of Europe and other regions if relevant to China-Central and Eastern Europe co-operation, it said.
The fund will be government-backed but will operate under business principles and be guided by the market, it added.
Central and Eastern Europe are part of China's modern Silk Road where Beijing is hoping to carve out new export markets for its companies as the domestic economy slows.
China's Vice Commerce Minister Gao Yan said last year that Chinese companies have already invested more than $5 billion in CEE countries.
But China's push for more investment at the gateway to the European Union comes amid growing calls in top Eurozone economy Germany to restrict Chinese investment in some sectors.
Riga is hosting a summit of leaders from 16 central and eastern European countries and China, a group dubbed '16+1' by Beijing.
China Life Insurance and Fosun Group are also involved in managing the fund, added the statement.
(Reporting by Ma Rong and Dominique Patton; Editing by Simon Cameron-Moore)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- South Korea Park approval rating slightly up to 5 percent: Gallup Korea
- Dollar holds gains after euro sinks on ECB's "less for longer" decision
- Saudi Arabia tells oil buyers of cuts after OPEC deal, PIRA says