ICBC Launched China’s 1st India-Dedicated Investment Fund


Chinese state-run bank Industrial and Commercial Bank of China (ICBC) launched the country’s first India-dedicated publicly offered investment fund, named as the ‘ICBC Credit Suisse India Market Fund’. This significant move came just after the first ever informal summit between Prime Minister Narendra Modi and Chinese President Xi Jinping which was held in April 2018 at Wuhan.

It is the China’s first publicly offered fund for investing in India and it will invest in exchange-traded funds listed on more than 20 exchanges in Europe and in the United States that are based on the Indian market.

• It will invest in the future of the Indian economy and track the distribution of the industrial structure across the Indian market.

• The fund will focus on various sectors such as the financial industry, information technology, alternative consumption, energy, essential consumption, raw materials, medicine, healthcare and other industries.

• The fund will also be beneficial for the large investors, it will add a low-relevant asset to the allocation tool that can effectively improve the effective frontier of the investor’s asset allocation and help the investor to better spread risks and obtain a more stable income.

India-China trade relationship :

The Chinese Ministry of Commerce announced on April 26, 2018 that India’s trade with China had gone up by more than 22 percent in the first quarter of 2018. 

• By the end of 2017, Chinese investments into India added up to more than 8 billion US dollar, as India has become an important market for infrastructure cooperation among Chinese companies and a major investment destination. 

• A number of Chinese tech companies have already been investing in and acquiring start-ups in India led by Alibaba and Tencent.