An overview of Silk Road Fund

(By chinca)

Updated: 2016-06-15 16:52:15

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The Fund was established in Beijing on December 29, 2014, with investment from the State Administration of Foreign Exchange, China Investment Corporation, Export-Import Bank of China and China Development Bank.
Purpose and Objectives
Following a philosophy of openness, inclusiveness and mutual benefit, the Fund mainly provides investment and financing support for trade and economic cooperation and connectivity under the framework of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road Initiative (hereinafter referred to as the Belt and Road Initiative). In collaboration with domestic and international enterprises and financial institutions, the Fund is designed to promote common development and prosperity of China and other countries and regions involved in the Belt and Road Initiative.
Positioning
The Fund is a medium to long-term development and investment fund. Through a variety of forms of investment and financing s, primarily equity investment, the Fund is dedicated to supporting infrastructure, resources and energy development, industrial capacity cooperation and financial cooperation in countries and regions involved in the Belt and Road Initiative to ensure medium and long-term financial sustainability and reasonable returns on investment.
Investment Philosophy
The Fund makes investment decisions based on market principles, international practice and professional standard. The Fund invests in equity, debt and other funds. It can work with international development organizations, domestic and overseas financial institutions to jointly set up funds, and also manage entrusted assets and commission others to invest.
Corporate Governance
The Fund has established a board of directors, a board of supervisors and a management team according to <em>the Company Law of the People's Republic of China. The Fund has also recruited high caliber professionals with diverse background from various disciplines, and set up an effective and efficient corporate governance mechanism.
Shareholder Structure
The Fund has a total capital of US$40 billion which shall be made in installment. The first installment of US$10 billion is composed of US$6.5 billion, contributed by the State Administration of Foreign Exchange (through Buttonwood Investment Holding Co.,Ltd.), US$1.5 billion by China Investment Corporation (through Seres Investment Co., Ltd.), US$1.5 billion by Export-Import Bank of China and US$500 million by China Development Bank (through China Development Capital Co., Ltd.).