China to benefit more from CPEC than Pakistan will: Report

The multibillion-dollar China Pakistan Economic Corridor (CPEC), which is part of Chinese President Xi Jinping's 'Belt and Road Initiative', will benefit China more than Pakistan due to lack of Pakistani input in the project.

The lack of Pakistani input into the CPEC, which the government said would drive economic growth to a targeted 6 per cent this financial year, adds to concerns that its benefits might not be as widely distributed as initially thought, the South China Morning Post reported, adding that it runs the risk that Islamabad will be left paying interest on loans to Chinese banks way into the future.

According to the news report, Chinese banks are keenly waiting to get their share of the pie, holding more than $20 billion for potential financing, much of it has already been filled by the Chinese, with Pakistani lenders getting a little look in.

"As of now, around $6 billion to $7 billion worth of projects are likely going on. Out of that, 10 per cent, or around 50 billion rupees ($470 million), can be local financing," the South China Morning Post quoted Saad Hashemy, research director at Karachi brokerage Topline Securities, as saying.
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China's Silk Road dealmakers eye Europe's banks, insurers, asset managers

After ports and industrial parks, the dealmakers leading China's trillion-dollar push to build a modern Silk Road are turning to the financial sector, targeting Europe's banks, insurers and asset managers to tap funds and expertise.

Last week, sources familiar with the matter said two of China's most acquisitive conglomerates, HNA Group and Anbang Insurance Group, had separately considered bidding for the German insurer Allianz SE.

Neither of the two made an offer, but the talks marked a new level of ambition for China: Allianz is a German stalwart, a pillar for local pensions and a global powerhouse with 1.9 trillion euros ($2.3 trillion) of assets under management.

HNA already owns a stake of just under 10 per cent in Deutsche Bank.

Bankers, lawyers, and company executives say more financial deals will come, led by state behemoths such as China Life and China Everbright, as well as private firms, including Legend Holdings and China Minsheng Financial.
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