This year, we celebrate the 11th anniversary of President Xi Jinping’s visionary proposal for the Belt and Road Initiative. This initiative, through its continuous evolution, has emerged as one of the world’s largest, broadest, and most impactful international economic cooperation platforms. Over the past decade, China and its partners have dedicated themselves to the success of the BRI to higher standards of quality and effectiveness.
The countries participating in the BRI account for around 60 percent of the world population and 40 percent of the global GDP, presenting enormous commercial opportunities. Stretching across Asia, Africa, Europe, and the Americas, the BRI has created new avenues for global economic growth, established new platforms for international trade and investment, and provided new opportunities for deep cooperation among participating countries. By the end of 2023, China’s direct investment in BRI countries had exceeded $300 billion. Notably, Hong Kong, leveraging its unique strengths as a gateway between China and the world, has emerged as a key regional “superconnecter” and “super value-adder” for the BRI ecosystem, playing a significant role in its success.
China International Capital Corp Ltd (CICC) has been a key player in the international financial arena since 1997. For two decades, we have been embodying the principle of “Chinese roots, international reach”, and serving as a bridge between domestic and global capital markets, we have established a strong presence in major financial centers such as Hong Kong, New York, London, Singapore, San Francisco, and Tokyo. Now, CICC is actively expanding our business into BRI countries, further demonstrating our unique position and expertise in the financial world to support the high-quality development of the initiative.
CICC’s efforts align closely with the BRI’s “five-pronged” approach and “eight major steps”, focusing on practical cooperation, financial integration, and fostering people-to-people bonds. We have made significant strides in several key areas.
The first is steadily expanding our presence in BRI countries. Aiming to build a world-class investment bank, CICC has steadily grown our presence in BRI countries, particularly in Southeast Asia, the Middle East, and Latin America. On June 28 this year, we officially opened our representative office in Vietnam.
The second is strengthening cooperation to support the high-quality development of the BRI. Drawing on our expertise in overseas IPOs, offshore bond issuances, and cross-border mergers and acquistitions, CICC has confidently played a leading role in numerous benchmark deals related to the BRI. Our work not only helps foster mutually beneficial outcomes but also strengthens the global competitiveness of the companies we support, ensuring a positive impact on all parties involved.
The third is facilitating bilateral capital flows under the BRI. Through partnerships, joint investment funds, and strategic agreements, CICC has strengthened ties with various institutions in BRI countries. We are actively cooperating with 87 central banks and sovereign investment institutions across 70 BRI countries and are attracting international long-term funds and family offices to invest in China. CICC’s involvement in BRI offers significant benefits such as access to a growing market, diversified investment opportunities, and potential for high returns. CICC has also been a strategic partner for Hong Kong’s Belt and Road Summit for nine consecutive years.
The fourth is promoting deeper collaboration through policy coordination and people-to-people engagement. In addition to our business efforts, CICC is committed to long-term vision and regularly organizes or participates in international exchanges, research collaborations, and seminars. By sharing our insights, we build trust and enhance opportunities for cooperation, ensuring a secure future for our partners.
With China actively pursuing a new phase of high-level opening-up, BRI, a core part of this effort is evolving toward even higher standards and creating significant business opportunities. The BRI presents an unparalleled opportunity for financial institutions like securities firms. Seizing business opportunities within the high-quality development of this initiative is not just beneficial but crucial. It will help Chinese financial institutions accelerate their international development and provide a platform for growth and expansion, motivating and instilling a sense of determination in the audience.
Regarding equity investment, some BRI countries are in the early stages of new economic and industrial development, offering significant market potential for investment and consolidation opportunities. Debt investment in BRI countries also provides the potential for high returns. The crucial differences in international ratings among these countries lead to a high bond yield variance, which can significantly enrich the investment scope of Chinese-funded institutions and enhance investment returns.
In terms of stock investment, on the one hand, establishing a connectivity mechanism between Chinese exchanges and those of BRI countries would diversify the channels for outbound investment. On the other hand, with the further advancement of system reforms in the mainland and Hong Kong stock markets, such as the inclusion of foreign companies in the Stock Connect program, more high-quality enterprises from BRI countries are expected to be introduced in the future. This will create significant listing and follow-on offering opportunities, providing hope for domestic investors. They will also gain access to a diverse range of investment targets.
Looking ahead, CICC will continue to expand our business presence in BRI countries. Leveraging our unique combination of investment, investment banking, and research capabilities, we are determined to deepen cooperation with companies, institutions, and investors worldwide. This inclusive approach will contribute to more outstanding cross-border financing for Chinese enterprises, attract high-quality foreign investment into China, enhance connectivity between the Chinese mainland and Hong Kong capital markets, and support the high-quality development of the BRI.
The author is chairman of China International Capital Corp Ltd.
The views do not necessarily reflect those of China Daily.
