The greatest business opportunity of the 21st century?
Laid out by President Xi Jinping in 2013, China's "Belt and Road Initiative" (abbreviated hereafter to "BRI") is an ambitious, multi-decade strategy to connect China with the world and fuel global economic growth. It is, in effect, the 21st century 'Silk Road', connecting China directly with over 65 countries and indirectly with most others.
It will create or enhance the physical (transport, communications and other infrastructure), financial (lending, capital-raising) and policy (customs, taxation coordination, trade and investment).
A natural opportunity for HSBC
The BRI requires vast investment – Asia alone estimated USD 8TRN by 2020.
Helping to finance this is a huge opportunity.
Revenues from cross-border RMB flows (RMB is China's currency) – are important to HSBC. Leading BRI would help grow these, as BRI activity creates RMB funding flows in and out of China.