Deutsche Bank has strengthened its links to China by signing a deal with the state-controlled China Development Bank to jointly finance $3bn of projects as part of Beijing’s One Belt, One Road infrastructure initiative.
In an announcement timed to coincide with this week’s visit to Germany of China’s premier Li Keqiang, Germany’s biggest lender said it would establish a joint team with CDB to work together on financing projects over the next five years.
China has announced hundreds of billions of renminbi in financing for the Belt and Road scheme, which aims to build roads, rails, ports, pipelines and other infrastructure across Eurasia to boost trade links in a modern version of the Silk Road.
Deutsche, which opened its first overseas office in Shanghai in 1872, is one of several foreign banks seeking to bulk up its Asian operations and it is in the process of hiring a number of telecoms, media and technology bankers in the region.
In the past month the Chinese conglomerate HNA has become Deutsche’s biggest shareholder, increasing its stake to just below 10 per cent after the German bank completed a €8bn rights issue to shore up its balance sheet.