If you still believe in the China growth story, here’s your chance to be part of it.
(Aug 5, 2013) -- China has issued an invitation for
international investors to get involved in building its capital’s future through
the construction of its infrastructure.
The Beijing Commission of Reform and Development, the city's
economic planner, told the China
Daily newspaper that it is targeting raising $55 billion—and large
international investors are invited to bid.
The six areas open to foreign investors include rail
transport, city roads, the rail transit complex, drainage treatment, garbage
disposal, and heat supply in townships, the commission said.
The project is to be developed over two stages, and private
companies are to enjoy the same policies in terms of land, price, investment
return, and supporting facilities as their state-owned counterparts, the
Investors should expect gains of around 8%, the commission
said, adding that the government would work hard to ensure returns were
This is the latest move by China
to internationalise its economy and financial markets.
Over the last decade its financial regulator has been
gradually raising the level of assets that international fund management firms
have been able to invest and hold in the country through various schemes and
Last month, the China Securities Regulatory Commission
announced that the combined investment quota of Qualified Foreign Institutional
Investors (QFII) had been raised to $150 billion—from a tiny initial amount in
2002. Some 229 overseas investors have already been granted the QFII status, including
major institutional investors including Norges Bank, which invests on behalf of
Pension Fund-Global and the Abu
Dhabi Investment Authority. The
Canada Pension Plan Investment Board and Ontario
Teachers' Pension Plan were two of the first North American investors to
use the programme.
Last month, the central
bank said it would move away from controlling the counrty’s markets as tightly
as it had been for several decades by removing the floor lending rates offered
by financial institutions.
For its part, China’s largest sovereign wealth fund, the China
Investment Corporation (CIC), is undergoing its own restructure.
The CIC has increased its level of foreign investment and
looked further outside its borders for targets.
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