China Fund Slams the Door to RMB Investment Wide Open for Foreigners... EU Bankers Ready to Walk In...
14 Aug, 2012, 08:01 ET
BRUSSELS, Aug. 14, 2012 /PRNewswire/ -- China's Permanent Green Energy Fund and The Europe China Foundation have signed an exclusive agency agreement in Tianjin, which would allow The Europe China Foundation to find investors for the PGEF outside of China. The groundbreaking agreement which would guarantee to the investor a minimum of 8% dividends, has whet the appetite of major banking institutions in the west, and has EU bankers vying for the chance to be the exclusive broker in the project.
This initiative comes amid a partnership between Shi DingHuan, China's Counsellor of the State Council and China's authority in all Renewable Energy activities, and the Europe China Foundation for cooperation in China-Europe Renewable Energy projects.
The PGEF along with other private and governmental partners has already rolled out an ambitious plan to take part in the building of more than 17134 waste recycling plants all over China. Plants are already up and running in Shaanxi Province. The 200 Billion dollar plan would not only contribute significantly to China's UN Millennium Development goal to cut the intensity of its CO2 emissions by 40-45% by the year 2020. But it would also boost the now lagging Chinese economy by allowing an almost unlimited amount of foreign investment in RMB.
The Europe China Foundation (http://www.eurochina-gov.com), Europe's premier NGO working with the PRC's Central Government, as well as State Owned Enterprises and Corporations, has been chosen by the PGEF –a collaboration of the top 6 national energy companies in China, to be their exclusive representative outside the PRC. The agreement is said to be the first of its kind in that it provides a platform for investors outside China both, corporate and private to invest directly in a government-backed Chinese fund and reaping the benefits of the ascent of the RMB, specifically, guaranteed dividends of 8% minimum. The significance of this agreement cannot be undermined; "...if you think about it, the Chinese economy is largely an extension of ours," said Bastiaan Van Gent, Vice-Chairman of the Europe China Foundation. "...for the last 30 years China has essentially been the manufacturing arm of the developed world; almost 40% of their GDP comes from exports, making us major contributors to their economy. Yet till now they've kept us from participating actively in it. This step to open their internal markets to Foreign Investment is an opportunity for China to have a real partnership with the major world economies, and it will solidify them as a world economic power," he said.
SOURCE Europe China Foundation
Share this article