China Plans to Invest About $10 Billion in ARAMCO IPO
Just the other day in Saudi Arabia, it was decided that banks would give loans to everyone who wants to buy shares in the Saudi oil company Saudi ARAMCO. The head of the state thinks, such a step should help the oil company strengthen its position in the global market. First, Saudi ARAMCO will be traded in the local Tadawul stock market. But the domestic investment will be not enough, so Crown Prince of Saudi Arabia Mohammed bin Salman called on friendly states to invest in the company. China turned out to be such a convenient partner, ready for fruitful cooperation. The Silk Road Fund, located in Beijing, is among the parties that are discussing the possibility of buying shares, other Chinese funds or state-owned enterprises can join. This step of China is very risky and very ambiguous, since no one can guarantee that oil prices will rise in the future, and an unfavorable turn of events for the investor is quite possible. But, on the other hand, with this step, China will expand its international political influence. Now it’s quite difficult to predict the USA reaction to such China step.