RCIF, Suiyong Capital, Dazheng Investment Group have launched China-Russia fund in yuan
The Russia-China Investment Fund (or RCIF, set up by the Russian Direct Investment Fund (RDIF) and China Investment Corporation), Suiyong Capital and Dazheng Investment Group have launched the China-Russia Regional RMB Fund, RDIF said in a statement on Friday. The corresponding announcement was made after a joint report by founders of the fund to the Heilongjiang Provincial Government during the 2019 Belt & Road Forum and the official visit of Russian President Vladimir Putin to Beijing.
Initially the fund holds 1 bln yuan (around $150 mln) under management. Its target capital, which will be raised from leading institutional investors in China, totals 6-7 bln yuan (around $1 bln).
"The fund mainly focuses on investment into strategic important projects in Russia and China in equal proportion. For Chinese projects, more focus will be put on Belt and Road related projects and other perspective sectors," the statement said.
The parties are also considering a number of specific investment opportunities in natural resources, financial services, industrial manufacturing and healthcare sectors.
"The fund will engage in the implementation of strategically important investment projects, focused on the Central Federal District, the Far East of Russia and the north-eastern part of China. The fund will actively promote the strengthening of economic ties at an inter-regional level, through the use of national currencies in all settlements. The China-Russia Regional RMB Fund virtually is the first active RMB fund focusing on Russia and China. It is one of the most important examples of regional cooperation between the two countries," Chief Executive Officer of RDIF Kirill Dmitriev was quoted as saying.