SINGAPORE, China International Capital Corp (CICC) and China Galaxy Securities, two state-backed investment banks, plan to launch investment funds worth over $1 billion in Southeast Asia as part of a push to tap the region’s fast-growing market and reduce risks from U.S. tariff tensions.
The move marks a shift for the banks, which usually focus on China’s domestic market. It also aligns with Beijing’s call for financial institutions to expand overseas investments and strengthen regional economic ties. Units of CICC and China Galaxy are expected to roll out the funds within the next 12 to 18 months, according to company executives and sources.
“As Chinese companies adopt the ‘China plus N’ strategy to diversify supply chains and operations outside China, they need strong local partners in Southeast Asia,” said Carol Fong, CEO of CGS International, a China Galaxy subsidiary. “This regional knowledge will support expansion in supply chain, distribution, and other industries.”
CICC Capital, the private equity arm of CICC, is also working with Malaysia Digital Economy Corp to launch a $100 million fund focused on Malaysia’s gaming industry, according to an official from Malaysia’s digital ministry.
Meanwhile, CGS International is partnering with Fullgoal Asset Management Hong Kong and Bursa Malaysia to simplify the listing of foreign ETFs in Malaysia, particularly those linked to Chinese assets. The first listings could take place within 12–18 months, pending regulatory approval. China remains Southeast Asia’s largest trading partner, with two-way trade rising 12% to $982 billion in 2024, official data shows.
