Shanghai’s city government is setting up a financial investment company with about $1bn to spend on investments in China and overseas.
这个新投资机构将被命名为“上海金融控股集团”(Shanghai Financial Holdings)。在此之前，中国中央政府采取了一系列举措，通过新成立的中国国家投资公司(China Investment Corporation)和全国社保基金(National Social Security Fund)，大力促进海外投资。
The new agency, to be called Shanghai Financial Holdings, follows moves by the central government in Beijing to promote overseas investment through the newly established China Investment Corporation and the National Social Security Fund.
上海金融控股还将接管上海国际集团(Shanghai International Group)的金融资产。上海国际集团是上海市政府现有的控股公司，将被一分为二。
The agency will also manage financial assets transferred from Shanghai International Group, the provincial government’s existing holding company, which is being split into two.
这些资产包括上海浦东发展银行(Shanghai Pudong Development Bank)等银行，以及申银万国(Shenyin Wanguo)等证券公司。
These assets include banks such as Shanghai Pudong Development Bank and securities firms such as Shenyin Wanguo.
Officials said Shanghai Financial Holdings, which is expected to be headed by Ji Xiaohui, chairman of Shanghai Pudong, would have a role in supporting Shanghai companies as they go abroad.
People familiar with the matter say the provincial government sees the agency as part of its strategy of promoting Shanghai as an international financial centre. However, officials concede that is unlikely to happen until the central government removes capital controls and allows the renminbi to trade freely.
Other regional governments are also seeking approval from the State Council to establish specialised investment funds.
Both Shanxi and Guangdong are launching energy funds while Sichuan hopes to establish a technology fund. Tianjin has launched an investment fund.
China allowed so-called window or trust and investment companies in the 1980s and 1990s, but they made largely unproductive investments abroad.
Some foreign bankers with China expertise say it is not clear whether the new investment agencies have formal systems in place to prevent poor investments.
“They lack transparency, and accountability and governance,” said a senior executive at one major international bank. “It isn’t clear how they will disclose related party transactions.”
However, other experts say this phase of overseas investment is likely to be more professionally managed.