Source: China Daily    Published: 2016-5-19

Covering 4.4 billion people - or 60 percent of the global population - across more than 60 countries and regions, the high-profile Belt and Road (B&R) Initiative has seen more words put into practice.

Over the first four months of the year, mainland enterprise secured as many as 1,401 new projects in economies along the B&R route, with the total contracts amounting to $31.1 billion, up 58.9 percent from a year earlier, the Ministry of Commerce said on Monday.

Tse Yung-hoi, honorary president of the Chinese Securities Association of Hong Kong, has called for a longer-term look at the investments in B&R economies, most of which are developing economies and somewhat like the Chinese mainland used to be decades ago, when the economic powerhouse was in its early years of reform and opening-up.

Data from the commerce ministry showed the country`s direct investments in B&R economies last year rose by 18.2 percent to $14.8 billion year-on-year, accounting for 12.6 percent of the nation`s total foreign direct investments.

The value of bilateral trade between the world`s second-largest economy and B&R economies totaled $995.5 billion in 2015, or 25.1 percent of the mainland`s total trade volume.

Via growing trade links, the mainland is aiming high to foster a closer geo-economic network spreading from Asia to the Middle East and onward to Europe - in a bold move to unlock the region`s enormous potentials that have long been constrained by poor infrastructures, Tse said.

Some 70 percent of companies along the route are already getting ready for the mega-regional trade initiative by taking actions to improve their competitiveness. These preparations include sourcing for project development opportunities, looking for venture partners and potential acquisitions, and establishing new representative offices, according to a Baker & McKenzie report released on Monday.

More than 50 percent of companies believe that the B&R Initiative will be of greater relevance to their businesses over the next three years.

Dismissing the view that investments in B&R countries may place greater debt burdens on the mainland, which has already been grappling with mounting bad loans, Tse noted the corresponding debt risks are controllable as the economic powerhouse will conduct due diligence to join in part of the financing activities, rather than take on the whole project like a "philanthropist".

Yue Yi, vice-chairman, executive director and chief executive of Bank of China Hong Kong and chairman of the Hong Kong Chinese Enterprises Association, believed Hong Kong has what it takes to play a handful of bigger roles, including as a platform for infrastructure financing, a springboard for the internationalization of mainland companies, a base for offshore renminbi products, a financial backbone for the six economic corridors, a network for trade and logistics, and a hub for professional services.

The financial hub, which has facilitated approximately 48 percent of foreign capital into the mainland and more than 60 percent of the country`s overseas investment during years of reform and opening-up, should polish its brand as a leader and guide in the B&R Initiative by expanding its talent pool, improving its financial services platform and upgrading its logistic service capacity, Tse added.