What does Silk Road Fund mean?
The difference between Silk Road Fund and AIIB is that AIIB is an intergovernmental multilateral development institution in Asia. Under its framework, all member States must contribute capital and mainly provide loans. Silk Road Fund, because of its PE-like attributes, is mainly aimed at those who have funds and want to invest, and equity investment may account for a larger proportion.
The investment cycle of Silk Road Fund is relatively long, but the pursuit of income and return does not include the sources of foreign aid or donations. The investment direction of Silk Road Fund is strategic medium and long-term projects, and equity investment funds can also cooperate with other financing models. In the context of the great development of the Belt and Road, some funds that can make medium-and long-term commitments need to be used for projects and capacity building related to the Belt and Road, including the development of related industries and the construction of infrastructure such as communications and roads.
Compared with other investment institutions, Silk Road Fund has the following characteristics:
First, long-term equity investment, combined with loans, equity, funds and other financing means, can provide long-term stable equity funds for infrastructure projects and meet the diversified financing needs of enterprises.
The second is to focus on supporting the development of the real economy. Mainly invest in infrastructure, resource development, industrial cooperation, financial cooperation and other real economic fields. In terms of investment, we should first consider docking the development strategies and industrial plans of various countries, and support countries to optimize their industrial structures and enhance their sustainable development capabilities.
Third, adhere to the principles of marketization, internationalization and professional operation. Silk Road Fund is neither a policy fund nor an aid fund. It needs to invest in profitable projects that conform to the principle of marketization, and fulfill its due social responsibilities while achieving medium and long-term financial sustainability.
The fourth is the diversification of partners. Silk Road Fund has established extensive cooperative relations with domestic and foreign financial institutions and enterprises, multilateral development banks and government departments, and cooperated in the joint investment and financing of projects or sub-funds.