China’s Silk Road Fund Is Operative

The $40 billion fund established to finance development along the New Silk Road Economic Belt and the New Maritime Silk Road is now operational, the People’s Bank of China announced today, with a $10 billion initial deployment of funds.

“The priority is to seek investment opportunities and provide monetary services throughout the Belt and Road Initiatives,” according to the statement released by the People’s Bank of China (PBOC), as reported in Xinhua.

President Xi Jinping announced the creation of the 40 billion U.S. dollar fund in November, and it was established on Dec. 29, 2014. The company will invest mainly in infrastructure and resource development, as well as industrial and financial cooperation.

“The Silk Road Fund welcomes […] domestic and overseas investors,” the statement said. “Other institutions can invest in the company’s second and third phase as long as they can make a long-term commitment,” said PBOC governor Zhou Xiaochuan.

The initial $10 fund is entirely from state institutions, with foreign exchange reserves taking up 65%, China Development Bank 5%, with the China Investment Corp. and the Export-Import Bank of China each investing 15%.