Hinkley Point the model as France and China pledge to set up investment fund

Hinkley Point: France and China are to set up a fund for joint investment in overseas projects, France’s foreign minister Jean-Marc Ayrault told  reporters at a joint briefing with his Chinese counterpart Wang Yi in Beijing yesterday, and confirmed that the two countries intended to use the model of the $24bn Franco-Chinese project to build the Hinkley Point C nuclear power point  in the UK as a blueprint. 
“Hinkley Point is a very good example of what we’re going to do together, to win contracts in third markets and in all sectors,” he said. “It’s a model that we support everywhere, including in Africa and Asia,” he said. 
The Chinese foreign minister used the briefing to defend his government against claims that foreign companies wanting to do business in China faced much greater restrictions – particularly in financial services, healthcare and logistics – than Chinese enterprises outside their home territories. China was a developing country, he said, and its foreign investment regime could not be held up to the same standards as those in place in developing countries. 
“If you look at the speed and the extent to which China has opened up compared to other developing countries, it’s one of the leaders, and may even be faster than some developed countries,” he said. “Of course, we are aware that China’s investment environment needs to improve. What I want to emphasise is that China will become more and more open and our investment environment will become better and better.”
Any perceived lack of a level playing field does not look set to deter the  global financial community from investing in the yuan, however. On the eve of the IMF adding the Chines currency to its Special Drawing Rights basket,  a  Bloomberg survey of 11 analysts  suggests that purchase of Chinese bonds by overseas investors could quadruple over the next two years after inflows slowed this year after yuan’s value depreciated by 4.2%.
“The IMF’s acknowledgment of the yuan as a freely usable currency enables central banks to count yuan assets as part of their official reserves, rather than just foreign-currency assets,” Becky Liu, senior greater China rates strategist at Standard Chartered Plc, said. “The nature of reserves investment is to get exposure to reserve currencies, instead of hedging everything back to the dollar.”

Source: reuters