CPECBULLETIN Your Ultimate Guide To CPEC
Habib Bank, which opened its branch in Urumqi, is looking for opportunities linked with the CPEC. Xinjiang is the starting point of the CPEC linking the region with the Gwadar port in Pakistan. The project is estimated to draw infrastructure investment of $45 billion.
Bank of Beijing has set up its branch in Urumqi recently which is the capital of Xinjiang. According to analysts, domestic and foreign financial institutions have been coming into Northwest China’s Xinjiang Uyghur Autonomous Region recently, hunting for opportunities under China’s “One Belt, One Road” (B&R) initiative. There are tons of prospects in the infrastructure sector, as major investment is planned, and that will lure even more firms into the region.
The bank first came to Xinjiang in 2015 to benefit from the opportunities of the Belt and Road, Wang Yu, professional at the Bank of Beijing branch in Urumqie expressed. He noted that the bank has been involved in financing some infrastructure projects in Urumqi.
At the end of 2016, there were 144 financial institutions here covering 15 different categories. Xinjiang’s banking sector raised 293.8 billion yuan ($42.73 billion) for B&R projects here in 2016.
Other than infrastructure, other sectors like equipment production will be a focus of the government to support the B&R initiative and the local economy as well.
Xinjiang has been helping local firms get additional access to the capital markets. The Xinjiang regional government signed an agreement with the China Securities Regulatory Commission in January. The contract gives firms in Xinjiang a “green expressway” to be listed on the Shanghai and Shenzhen stock exchanges.
