Chinese banks play increasing role in 'Belt and Road' projects

China Plus Published: 2017-05-11 20:21:26
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A press conference is hosted by the State Council Information Office on the role of the Chinese banking sector in supporting the "Belt and Road" program in Beijing on May 11, 2017.[Photo: China.com.cn]

A press conference is hosted by the State Council Information Office on the role of the Chinese banking sector in supporting the "Belt and Road" initiative in Beijing on May 11, 2017. [Photo: China.com.cn]

Chinese banks have provided significant financial services support to the projects along the "Belt and Road" initiative, according to information presented during a press conference hosted by the State Council Information Office on Thursday.

"By the end of 2016, nine Chinese banks had established 62 primary affiliates in 26 countries participating in the 'Belt and Road' initiative. Those include 18 subsidiaries, 35 branches and nine representative offices. The China Banking Association is currently establishing our representative office in London. The China-proposed Asian financial cooperation association, which our organization is heading, will also soon be set up," explained Pan Guangwei, Deputy Director of the China Banking Association.

Pan Guangwei,Deputy Director of the China Banking Association,speaks during a press conference on the role of the Chinese banking sector in supporting the "Belt and Road" program in Beijing on May 11, 2017.[Photo: China.com.cn]

Pan Guangwei, Deputy Director of the China Banking Association, speaks during a press conference on the role of the Chinese banking sector in supporting the "Belt and Road" program in Beijing on May 11, 2017. [Photo: China.com.cn]

Pan said as the “Belt and Road” initiative aims to promote joint efforts to build through consultation to meet the interests for all, many international banks are also expanding their operations in China.

"As of the end of last year, 54 commercial banks from 20 'Belt and Road' countries had established six subsidiaries, one financial company, 20 branches and 40 representative offices," added Pan. 

Pan said the Chinese banks have played a number of roles in facilitating the implementation of the "Belt and Road" initiative abroad, including providing guidance in the overall planning of the program, expanding financing power, promoting trade and controlling risks.

According to the official, the financial services provided by these banks have helped to materialize projects in a number of areas, including the construction of highways, railways, ports, as well as electric power generation and telecommunications.

"In 2016 alone, Chinese enterprises entered 126 US billion dollars' worth of engineering contracts along the routes of the 'Belt and Road' initiative. Chinese foreign direct investment into those countries reached 14.5 billion dollars. All these projects depended on the financial support offered by banks," explained Pan. 

The official said beyond big players, many small to medium-sized enterprises with notable technological know-how and brand recognition from those countries have also benefited from financial support of Chinese banks, which have allowed them to tap into the tremendous market potential of China and achieve exchanges of resources and talent.

Officials from several major Chinese banks were also present during Thursday’s briefing. Ding Xiangqun, a deputy director of China Development Bank, said her bank has been one of the Chinese financial institutions actively getting involved in building the "Belt and Road."

"By the end of 2016, China Development Bank had made 160 billion US dollars in loans along the paths of the 'Belt and Road,' with a balance of more than 110 billion dollars. These loans had mainly funded infrastructure construction, industrial capacity building, the energy and resources sector, as well as other projects that improve people's livelihood, " said Ding. 

Besides China Development Bank, other major Chinese banks, including Exim Bank of China, Bank of China, Industrial and Commercial Bank of China, as well as China Construction Bank, have all provided significant services and support to projects under the "Belt and Road" initiative.

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