Could draw more investment into Europe
A spokesman for the European Bank for Reconstruction and Development (EBRD) told the Global Times Monday that China was exploring the possibility of joining the multilateral lender.
"I'll confirm that Chinese authorities have expressed their interest in becoming a member, a shareholder of [the EBRD]," Anthony Williams, head of external relations of the EBRD, said in an e-mail.
Any formal application would have to be approved by the EBRD's existing shareholders, he noted.
The Financial Times reported Sunday that a senior Chinese official, who was understood to be People's Bank of China Governor Zhou Xiaochuan, had written to EBRD President Suma Chakrabarti suggesting that China become a shareholder in the bank.
The bank is owned by 64 countries and regions, the EU and the European Investment Bank, according to its official website. These shareholders have each made a capital contribution, which constitutes the core capital of the bank.
Joining the EBRD would not only help Europe attract more Chinese investment but also deepen cooperation between the China-initiated Asian Infrastructure Investment Bank and other multilateral banks, "which is seen as a win-win move," Wang Yiwei, senior fellow of the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times Monday.
Premier Li Keqiang was quoted by the Xinhua News Agency in June as saying the country pledged 315 billion euros ($354.9 billion) to investing in Europe and he encouraged bigger roles of other financing arrangements in the revitalization of the European economy.
"Those gestures showed that China and Europe will pursue financial cooperation with the aim of meeting the demand for investment," Wang said, noting that the country is building ties with Europe under the "Belt and Road" initiative.
As one of the largest shareholders of the EBRD in terms of registered capital, the UK is actively encouraging the internationalization of the yuan while supporting the inclusion of the yuan in the IMF's Special Drawing Rights basket, Wang noted. "Becoming a member of the EBRD will help companies improve their financing channels."
