China has officially launched its new $40bn infrastructure fund, which will be used to finance ‘Belt and Road’ initiatives in the country.
The Silk Road fund was originally announced in December and is being jointly funded by China's foreign exchange reserves, China Investment Corporation, Export-Import Bank of China and the China Development Bank.
Backed by the country’s $4trn forex reserves, it will mainly be targeting work in Asia, Europe and Africa, although the fund will be ‘open’ and can do business anywhere in the world.
According to the People’s Bank of China, the fund will " seek investment opportunities and provide investment and financing services during the progress of the Belt and Road Initiatives". The Belt and Road initiatives refer to the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives raised by China.
A management team headed Wang Yanzhi, an official with the country’s foreign exchange regulator will operate the fund.