China firm to invest £1 billion into London's 'third financial district' project
Refurbishment of Royal Albert Dock aims to lure Chineses business to '3rd financial district'
China Minsheng Investment, the mainland's largest private investment fund, charted a course into Europe when it announced yesterday it will invest in a £1 billion (HK$12 billion) development in London that is likely to attract a flood of Chinese businesses.
The fund, with an initial capital base of 50 billion yuan (HK$63 nillion) will join Advanced Business Park (ABP), a private Chinese developer, to transform Royal Albert Dock into a business port that investors described as a third financial centre for London.
The private investment fund, which includes 59 powerful non-state businesses in China, will contribute most of the funds for the development.
"The investment is a strategically important beginning for our exploration in the European market," Minsheng CEO Li Huaizhen said at a signing ceremony in Shanghai yesterday. "We will closely work with global companies to bolster Chinese firms' global drive."
The project in east London was secured by ABP in 2013 and is expected to add 20,000 jobs and £6 billion to the local economy.
Xu Weiping, founder and chairman of ABP, said it had the potential to become a third financial centre in London after the City of London and Canary Wharf. It is one of the largest Chinese investments in the United Kingdom.
"The investment is not just a commercial deal," Xu said.
"It marks a milestone for Chinese private businesses to play a bigger role in the world economy."
The mainland leadership is active in promoting China's outbound investments to wield the country's worldwide economic influence.
Last year, Beijing unveiled its ambitions of creating the "New Silk Road Economic Belt" and the "21st Century Maritime Silk Road," pledging to shell out billions of dollars on roads, railways, ports and airports across Central and South Asia to consolidate China's economic ties with the world.
Minsheng Investment was established last year with support from Premier Li Keqiang.
The premier hoped to introduce new competitors to the country's strategically important industries and is adamant about breaking up monopolies enjoyed by dozens of government-owned juggernauts.
Minsheng chairman Dong Wenbiao, the former chairman of China Minsheng Banking, attended the ceremony yesterday, dispelling rumours about an investigation into him by the Communist Party's anti-graft body earlier this month.
There was speculation that Dong was linked to the continuing investigation into Ling Jihua, the disgraced aide to former president Hu Jintao.
