CICC now open, working to finance infrastructure
China has taken another step in its financial reform program, with the opening of its first international investment bank, China International Capital Corporation Ltd. (CICC), which opened in Beijing in August. Major investor in this new venture is the People`s Construction Bank of China (PCBC), which is one of four leading state-owned specialized banks in China. PCBC, plus the Morgan Stanley Group Inc. of the United States, China National Investment and Guarantee Corp., the Government of Singapore Investment Corp. and Hong Kong-based Mingly Corporation Ltd. are funding the CICC, which has starting capital of (US)$100 million.
The state council has drawn special regulations to allow CICC to play an important part in the development of the country`s capital market and to be a model for upcoming investment banks. The CICC will help raise funds for the development of infrastructure and important industries, while working toward a more internationalized investment market.
CICC will make direct investments in Chinese infrastructure with its capital, plus aid businesses which are restructuring, financing projects or looking for foreign investors.