China, Saudi Arabia Sign Cooperation Deals Worth USD65 Billion; Beijing May Invest in Aramco's IPO
Yicai Global
/SOURCE : Yicai
China, Saudi Arabia Sign Cooperation Deals Worth USD65 Billion; Beijing May Invest in Aramco's IPO

(Yicai Global) March 17 -- China has signed 14 memorandums of understanding and letters of intent with Saudi Arabia during King Salman bin Abdulaziz al-Saud's official visit to Beijing. King Salman is paying a state visit to China from March 15 to 18.

The agreements, which involve increasing capacity and investment cooperation between the two countries, includes 35 partnerships worth USD65 billion in various fields including investment, energy and space, state-run Xinhua News Agency reported yesterday, citing deputy foreign minister Zhang Ming. However, no further details were disclosed.

During King Salman's visit, both sides discussed China's possible participation in the planned initial public offering of Saudi Arabian Oil Company, Saudi Aramco, Bloomberg reported yesterday, quoting people with knowledge of the matter. China may participate in Aramco's flotation mainly through its sovereign wealth fund China Investment Corp. (CIC), according to the same sources. However, it is not clear yet whether CIC will join as a cornerstone investor or directly purchase Aramco shares during its IPO. PetroChina Co. [SHA:601857] may also invest in the IPO, it was reported.

China welcomes Saudi Arabia to become a global partner of its 'One Belt, One Road' initiative and is also willing to become a global partner of Saudi Arabia to help diversify its economy, Chinese President Xi Jinping said yesterday during his meeting with King Salman. China is a reliable and stable crude oil export market for Saudi Arabia.

The two nations should work more closely in the energy field, deepen cooperation in communications and aerospace and set up financial and investment cooperation platforms. The two sides should continue to step up cooperation in culture, education, health, technology, tourism, news and security, Xi said.

 

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