Risk Management of the “Belt and Road Initiative” Projects – An Empirical Study on Investments of the Chinese State- Owned-Banks in the Region

Kong, Lei

Abstract

This thesis attempts to examine the current risk issues of state-owned banks for their involvement in the ‘Belt and Road’ projects, and to develop a unique risk management framework. It is found in the literature that financial policies and intermediaries play a fundamental role in cross-border investment and requires careful consideration of appropriate methods and regulation instruments, as cross-border investment always involves risks. Developing countries with relatively immature market systems may still need policy-based financial provision at the present stage. Together with an evaluation of traditional measures adopted by firms involved in OFDI, the study tries to identify the potential risk factors that affect BRI projects by looking at various contemporary risk factors. The investigation of the relations between SOBs and development finance that has been overlooked in the existing literature becomes the foundation of this research, whilst thorough evaluations are given to the challenging issues among these projects.

This research adopts qualitative research methods, in which the adoption of case studies and interviews as the primary approaches, combined with documentary analysis throughout the research process. The carefully selected cases and correspondent analysis of parallel comparisons provide essential clues for identifying, classifying and prioritizing the risk factors associated with the BRI project. This study aims to reveal the particularities of the state-owned investments of BRI project financing to achieve the research objectives by connecting the theoretical construction with risk management issues. This respect goes beyond the traditional perspective of overseas investment risk management as it endows the classical theory with specific implications under empirical evidence.

Citation

Kong, L. Risk Management of the “Belt and Road Initiative” Projects – An Empirical Study on Investments of the Chinese State- Owned-Banks in the Region. (Thesis). Edinburgh Napier University

• Thesis Type: Thesis
• Deposit Date: Aug 21, 2023
• Publicly Available Date: Aug 21, 2023
• DOI: https://doi.org/10.17869/enu.2023.3175212
• Award Date: Jul 6, 2023