Chinese developer Xu Weiping plans to transform a portion of London into a financial district where Asian businesses can establish their offshore headquarters. (Photo : Reuters)
China's largest private investment company Minsheng Investment Co. Ltd. (CMI) stated on Saturday that the company is set to invest $1.5 billion in a China-led project to create London's new financial district.
Considered as China's largest U.K. investment in recent years, the endeavor would be launched in August this year, with a gigantic registered capital of 50 billion yuan.
The project was announced last year, with Minsheng as a majority investor by Advanced Business Park (ABP), a Chinese developer, and Mayor Boris Johnson. The project is being labeled as London's third financial district, after Canary Wharf and the City.
ABP is headed by Xu Weiping, a Beijing businessman, and plans to develop a huge area in east London, particularly at the Royal Albert Dock, into 400,000 square meters area for financial offices.
Minsheng Investment is denying ties with the State-owned Minsheng Bank Corp. despite the name resemblance.
The fund's international advisory committee which includes former prime ministers in Europe, Asian businessmen, and a Nobel laureate, met in Beijing January of this year to discuss the fund's global strategy. The fund announced that its priority areas of investment would be in sustainable energy, real estate and aircraft services.
The developers and officials are packaging the yet-to-be developed area as European headquarters for Asian companies. An added selling point would be its proximity to the London airport.
Minsheng president Li Huaizhen told Shanghai reporters on Saturday that "after the project is completed, it will be the international platform and foundation for Chinese companies and capital to enter the European market." The president made the announcement immediately after signing a deal with the U.K. finance ministry.
As the Chinese economy stabilizes, businessmen are exporting capital in a rate that will soon outpace inhouse investments.
China's Ministry of Commerce announced that the country's investment last year increased by 14.1 percent, reaching $102.9 billion.
