Who Rules the New Silk Road? Seattle, WA The Asian Infrastructure - - PowerPoint PPT Presentation

Who Rules the New Silk Road?

October 5, 2019, Saturday Seattle, WA Dongsheng Zang Associate Professor of Law UW School of Law Email: zangd@uw.edu

The Asian Infrastructure Investment Bank

On January 16, 2016, the China-backed AIIB (Asian Infrastructure Investment Bank) starts business. President Xi Jinping gave the keynote speech. Photos from People’s Daily, January 17, 2016, A1.

Other Financing Sources

▪BRICS Development Bank ▪China Development Bank ▪China Import-Export Bank ▪China’s domestic players: central SOEs

People’s Daily, February 22, 2017.

Financing

• China’s policy banks have provided loans

worth of $200 billion;

• Bank of China, $100 billion, on 420 projects;
• China Bank of Industry and Commerce, $337

billion total investment, on 410 projects;

• China Construction Bank, $90 billion, and 180

projects;

Issuer Time Amount Capital Market

China Development Bank (CDB) December 20, 2017 US$350 million, 5-year fixed interest rate “Belt and Road Bonds” Hong Kong Stock Exchange December 4, 2018 US$2.4 billion, both U.S. dollar and Euro denominated bonds Not specified. Likely Hong Kong Stock Exchange. January 2019 US1.5 billion, in U.S. dollars, Euro and Hong Kong dollars. Hong Kong Stock Exchange

CDB Overseas Capital Market Operations

Eximbank Overseas Capital Market Operations

China Export- Import Bank (Eximbank) April 19, 2016 US$3.0 billion in total. 5-year US$1.25 billion, and 10-year US$1.0 billion, 3-year Euro 650 million Singapore Stock Exchange November 23, 2016 Euro 2 billion. 3-year and 5-year Singapore Stock Exchange March 7, 2017 US$3.0 billion bonds in total. 5-year US$ 1.15 billion 10-year US$850 million 3-year Euro 1.0 billion Singapore Stock Exchange

A Case in New York

Atlantica Holdings v. Sovereign Wealth Fund, 813 F.3d 98 (2nd

• Cir. 2016):

▪Section 10(b) of the Securities Exchange Act of 1934 ▪Outside the United States ▪a sovereign wealth fund owned by Kazakhstan government ▪Foreign Sovereign Immunity Act of 1976

BTA Bank SK Fund

Atlantica Baltica

China’s Dilemma

▪BRI and Major Financial Centers

• Hong Kong
• Singapore
• London

▪Domestic Reform

• Domestic capital market

▪China and BRI-Participating Countries

• China’s commitment to BRI Countries

Comments?

Email: zangd@uw.edu William H. Gates Hall #427 University of Washington School of Law Seattle, WA 98195