China's state-owned enterprises (SOEs) are spearheading investment in infrastructure projects overseas along the ancient Silk Road land and sea trade routes, part of Beijing's signature Belt and Road initiative.

Firms owned by the central government have co-built 1,676 projects with countries along "the Belt and Road", the state assets regulator said in a handout ahead of a news conference on the sidelines of the 19th Party Congress in Beijing.

SOEs such as shipping conglomerate COSCO and the world's biggest utility State Grid Corp of China [STGRD.UL] have invested heavily in such projects in recent years to deepen China's links with economies throughout Asia and beyond.

"Overseas assets held by State Grid has reached $57.7 billion by now, all of which are profitable," Shu Yinbiao, chairman of State Grid, said at the news conference.
But China has been increasingly scrutinising "irrational" overseas spending by both private and state-owned firms since late last year, which it suspected was one way of disguising capital flight as the yuan currency faltered.

The state assets regulator issued regulatory rules on outbound investments by centrally-controlled state firms early this year, saying it would establish a negative list of investment projects that centrally-controlled state firms would not be allowed to invest in.

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Source: The New York Times