Can ICBC Asia profit from China’s new Silk Road projects?

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ICBC Asia says its investments in new Silk Road projects will reach HK$30 billion at the end of 2017. Photo: Reuters

Published: 8:46pm, 25 Jun 2017Updated: 10:25pm, 25 Jun 2017

ICBC Asia has invested HK$20 billion (US$2.56 billion) in 32 projects along China’s new Silk Road in the 13 months ended early June, but expected the amount to reach HK$30 billion by the end of 2017.

“These projects are scattered in countries including Vietnam, Malaysia, Cambodia, Thailand, India, Indonesia and Australia,” said Jiang Yisheng, the chief executive of ICBC Asia.

“And they mainly involved infrastructure building such as ports, electricity [power stations] and transportation in the Asia-Pacific region.”

Jiang said the bank remained cautious when it comes to the projects it invests in, and would not take on an overseas investment project alone.

“We would rather give up, if there was no involvement by the local ICBC branches or local banks,” said Jiang.

“The possible socio-political unrest and changeable policies in some Southeast Asian countries are big potential risks for us, without the support of local participants.”

ICBC Asia CEO Jiang Yisheng stresses that the bank would not invest in belt and road projects alone without the involvement of fellow Chinese firms or local ICBC branches. Photo: David Wong

To avoid potential trouble, Jiang said ICBC Asia preferred to expand overseas along with Chinese government-backed companies, primarily to seek opportunities in the Asia-Pacific region.