In a first, Chinese firms are making money from money that flows from their clients to the country.
China’s state-owned Bank of Commerce has said it is planning to create up to $2.8 trillion in new funding for its investments in emerging markets, a big step up from a $2 billion fund created in 2008 to finance loans to emerging economies.
But Chinese firms have also been making money.
The biggest foreign investors in Chinese stocks in the first quarter were from Europe and the United States, according to data compiled by Bloomberg.
The funds are meant to cover the cost of investments in those markets.
Chinese firms also are getting money from companies that are using technology to make money from the Chinese stock market.
China has been pushing for the creation of a foreign exchange market to allow investors to exchange yuan for foreign currencies in foreign currencies, and some have used such a platform to invest.
The Wall St. Journal first reported the fund was set up by the Bank of China.
The fund, with a goal of raising about $300 billion a year, will be funded by $150 billion in yuan and $50 billion in U.S. dollar, the Bank said in a statement on Monday.