China’s Silk Road Chamber of Commerce sets up $7 B investment fund

XI ‘ AN CITY, China -  The Silk Road Chamber of International Commerce (SRCIC), a confederation of business chambers from various countries worldwide, has set up a $7 billion (50 billion Renminbi) fund for investment in various projects in its member countries. 

SRCIC is a transnational umbrella organization composed mainly of national business groups of member countries. 

The chamber currently has around 129 member business chambers from 77 countries around the world, the Philippines included. 

Speaking to visiting journalists on Saturday night, Lu Jianzhong, SRCIC chairman, said the fund, which was created in December 2017, could be tapped for equity investments via joint ventures as well as loan financing of viable projects in member countries. 

“If it’s a profitable project, funds from other member chambers may also come in,” he said through an interpreter. 

Existing projects found to be viable may also be expanded through the use of the fund. 

Lu said around 10 billion Renminbi (RMB) out of the total fund would be ready for use by next month. 

“For this fund, the priority is ASEAN and Belt and Road countries,” he said. 

In the Philippines, the Philippine Chamber of Commerce and Industry (PCCI) is an affiliate of the SRCIC Philippines. 

Lu is expected to make a formal announcement about the fund during the SRCIC Business Summit that would be held in Zhangjiajie City this week. 

SRCIC, established in December 2015, has been acting as a link between businesses and governments to advance business activities in countries covered by the Belt and Road Initiative (BRI). 

The organization is currently based in Hong Kong, but has its secretariat in this city.

It maintains representative offices in Beijing and Shanghai. 

The Belt and Road Initiative (BRI) is an ambitious program of China to connect Asia, Africa, and Europe by creating land and maritime networks. 

It primarily aims to improve regional integration via infrastructure, trade, and investments. 

The BRI  covers the so-called Silk Road Economic Belt that links China with Southeast Asia, South Asia, Central Asia, Russia, and Europe.