Attractive projected returns enticed London’s biggest banks
Following the uncertainties caused by Brexit, London’s bankers and traders eye opportunities brought by the Belt and Road Initiative, China Daily has reported. Attractive projected returns, relative to risks, enticed London’s biggest banks to tap into the market.
Ian Stuart, CEO of HSBC UK, notes that countries along the trade route are in need of help in financing and developing their infrastructure. Participation of multilateral development banks and other public sector investors will help gather private capital, he added.
HSBC estimates that development projects in line with the venture will cost up to $6 trillion in the next 15 years, while Pricewaterhouse-Coopers expects the cost to be worth $5 trillion.
Following China’s lead in financing the initiative, HSBC has already financed nearly 100 projects in B&R economies, while Standard Chartered funded more than 50 B&R deals in 2017. Apart from the financial and technical advantage they have, the British government has continuously supported the B&R Initiative, making them an important partner for China, China Daily has added.
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