China is exploring the possibility of joining the European Bank for Reconstruction and Development (EBRD), a spokesman for the multilateral lender said on Monday, Oct. 26, the Global Times reported.
"I'll confirm that Chinese authorities have expressed their interest in becoming a member, a shareholder of [the EBRD]," Anthony Williams, head of external relations of the EBRD, said in an email, noting that a formal application has to be approved by the EBRD's existing shareholders.
The Financial Times reported Sunday that EBRD President Suma Chakrabarti received a letter from a senior Chinese official, believed to be People's Bank of China Governor Zhou Xiaochuan, proposing that China be included as a shareholder in the bank.
According to its official website, the bank's shareholders are made up of 64 countries and regions, the E.U. and the European Investment Bank, according to its official website. Each shareholder has made a capital contribution, which forms the core capital of the bank.
Wang Yiwei, senior fellow of the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times that allowing China to join the EBRD would help Europe attract more Chinese investment as well as deepen cooperation between the China-initiated Asian Infrastructure Investment Bank and other multilateral banks, "which is seen as a win-win move."
In June, the Xinhua News Agency quoted Premier Li Keqiang as saying that the country vowed to invest 315 billion euros ($354.9 billion) in Europe as he urged to use other financing arrangements in the revitalization of the European economy.
"Those gestures showed that China and Europe will pursue financial cooperation with the aim of meeting the demand for investment," Wang said, noting that China is building ties with Europe as part of its "Belt and Road" initiative.
Wang added that the U.K., being one of the largest shareholders of the EBRD, is encouraging the internationalization of the yuan as well as supporting the inclusion of the yuan in the IMF's Special Drawing Rights basket.
"Becoming a member of the EBRD will help companies improve their financing channels," Wang noted.