Thursday, October 27, 2011

China | Can't Print Enough Money? Make a Bank (Reuters)

Exclusive: China eyes creation of ASEAN Bank

Late Chinese leader Mao Zedong is seen on a 100 yuan banknote in this photo illustration taken in Beijing December 9, 2010. REUTERS/Petar Kujundzic
BEIJING | Thu Oct 27, 2011 9:16am EDT
(Reuters) - China is considering a proposal to set up a regional bank to help its small and medium enterprises (SMEs) invest in Southeast Asian neighbors, fund infrastructure projects and promote development in southwestern China, two independent sources said.
After approval by the State Council, or cabinet, China would formally invite members of the Association of Southeast Asian Nations (ASEAN), Japanand South Korea to each take a stake in the ASEAN Bank, said the sources, who have direct knowledge of the proposal.
China, the world's second biggest economy, is likely to be the bank's biggest single shareholder with an initial investment of up to 30 billion yuan ($4.7 billion), the sources said, requesting anonymity because they are not authorized to speak to reporters. The other countries' stakes still must be negotiated.

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