MIDDLE MEN BETWEEN EAST AND MIDDLE EAST
A growing volume of Arab capital has been finding its way into
China -- either through direct joint-venture investment or indirectly
through equity holdings in Hong Kong financial institutions with China
connections. And the Chinese have not been slow in responding to Arab
overtures.
It is telling that the first, and so far only, bank with foreign
equity incorporated in China involves substantial Arab capital. An Arab
bank was also among the first four foreign banks given permission, late
last year, to operate a branch in the People's Republic. And in
March, the Chinese announced the setting up of an Islamic bank.
It will operate in the autonomous region of Ningxia in the north of
China where the population is predominantly Moslem. It is a joint
venture between the Ningxia Islamic International Trust and Investment
Corporation and the Faisal Islamic Bank of Egypt. ...
