What’s new: Five city governments in northeastern China’s Shandong province agreed to jointly set up a 100 billion yuan ($15 billion) investment fund for local infrastructure development as a part of an ambitious plan to spur regional growth.
The fund will be jointly financed by the governments of Qingdao, Yantai, Weifang, Weihao and Rizhao, as well as the provincial government-backed road builder Shandong Hi-Speed Group, officials said Tuesday.
Local governments will gradually exit the fund after a certain period and invite private investors to take part, officials said.
What’s the context: The infrastructure investment fund is part of a broader plan to bolster regional integration of the Jiaodong peninsula, where the five cities are located.
The Jiaodong Economic Circle, a regional development idea proposed this year, is expected to become a major growth engine of northeast China, driven by business with Japan and South Korea.
The region is the latest city cluster targeted for regional integration in China, following the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei economic zone and the Greater Bay Area.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com).
