Chinese state-run bank ICBC launches India-dedicated investment fund

May 14, 2018 17:03 IST
Chinese bank ICBC launches India-dedicated investment fund

Chinese state-run bank Industrial and Commercial Bank of China (ICBC) on May 14, 2018 launched the country's first India-dedicated publicly offered investment fund, named as the ‘ICBC Credit Suisse India Market Fund’.

This significant move came just after the first ever informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping which was held in April 2018 at Wuhan.

Indo-China Informal Summit

  • Prime Minister Narendra Modi and Chinese President Xi Jinping on April 28, 2018 held the first-ever informal summit at Hubei Provincial Museum in Wuhan, China.
  • The Indo-China informal summit was focused on terrorism, climate change and developing a mutually beneficial relationship between both countries.
  • Both the sides expressed their strong opposition to terrorism and recognised the common threats posed by terrorism.
  • They restated the importance of building an open global economic order to enable all countries to pursue their development and contribute to the elimination of poverty and inequality in all regions of the world.

Highlights of the ICBC Credit Suisse India Market Fund

• It is the China's first publicly offered fund for investing in India and it will invest in exchange-traded funds listed on more than 20 exchanges in Europe and in the United States that are based on the Indian market.

• It will invest in the future of the Indian economy and track the distribution of the industrial structure across the Indian market.

• The fund will focus on various sectors such as the financial industry, information technology, alternative consumption, energy, essential consumption, raw materials, medicine, healthcare and other industries.

• The fund will also be beneficial for the large investors, it will add a low-relevant asset to the allocation tool that can effectively improve the effective frontier of the investor's asset allocation and help the investor to better spread risks and obtain a more stable income.

Why China should invest in India?

  • The recent researches indicate that the Indian market has gradually become one of the best-performing markets in the world due to ongoing reforms, macroeconomic improvement and enhanced profitability.
  • As per ICBC, investing in the Indian market now means an investor can enjoy double-digit economic growth.
 

Video: Check out the latest current affairs of this week

India’s trade with China

• The Chinese Ministry of Commerce announced on April 26, 2018 that India’s trade with China had gone up by more than 22 percent in the first quarter of 2018.

• By the end of 2017, Chinese investments into India added up to more than 8 billion US dollar, as India has become an important market for infrastructure cooperation among Chinese companies and a major investment destination.

• A number of Chinese tech companies have already been investing in and acquiring start-ups in India led by Alibaba and Tencent.

Is this article important for exams ? Yes

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