China’s flagship “One Belt, One Road” initiative could be creating new asset quality dangers for the country’s financial system, Fitch Ratings has warned in a new study, adding there were also risks for the countries along the planned routes involved in the economic development project.
The Belt and Road involves hard and soft infrastructure investment in more than 60 countries in central and south East Asia, Africa and Europe, with the simple intention of boosting trade.
Funding for the project is coming from regional financial institutions such as the Asian Infrastructure Investment Bank, China’s Silk Road Fund, as well as Chinese policy and commercial banks.