LPG exported from Kazakhstan arrives at Alataw Pass, Xinjiang. The abundant oil and gas resources in Eurasian countries and China's expertise in renewable technologies are expected to create the framework for a cohesive partnership among the countries on the New Silk Road. [Photo/Xinhua]

These banks have a long track record of investing in neighboring countries and have closely monitored investment opportunities in emerging markets for many years. The Silk Road Fund will cooperate rather than compete with them, because projects in general need a mix of debt and equity financing, Zhou said.

For instance, the fund will take equity stakes along with other investors, making it easier to launch projects that have difficulty borrowing from banks.

The Ex-Im Bank and CDB could follow up by extending loans to such projects.

Other domestic and foreign institutions are welcome to join the fund as investors in later phases or cooperate with its subsidiaries, he said.

Highlights of the Silk Road Fund

·A limited liability company of the fund was registered on Dec 29 and the first board meeting was held on Jan 6.

·The fund is not a sovereign wealth fund but rather a private equity fund with a longer-term investment horizon.

·The projects it invests in should have a reasonable return for the medium and long term.

·It is not a Chinese version of the Marshall Plan.

·It does not seek to become a multilateral development bank.

·It may set up subsidiary funds based on industries and geographical areas.

·It needs professional staff with knowledge of various fields such as investment and finance, key industries and countries along the "One Belt, One Road".

·It will cooperate rather than compete with China Investment Corp, the Export-Import Bank of China and China Development Bank Corp.