China will set up funds totaling 50 billion yuan ($7.6 billion) to invest in projects related to the Belt and Road initiative (B&R) in South China's Guangxi Zhuang Autonomous Region and countries of the Association of Southeast Asian Nations (ASEAN), the Xinhua News Agency reported on Sunday.

The funds will be established jointly by an investment arm of China Development Bank (CDB) and Guangxi Investment Group. They will be used to support infrastructure and industrial projects along the B&R, according to the CDB, China's policy bank.

Guangxi is an important border area that connects China with ASEAN countries and plays a key role in the construction of the B&R initiative.

Proposed by China in 2013, the B&R initiative aims to build trade and infrastructure networks connecting Asia with Europe and Africa based on ancient land and maritime trade routes.

Hong Qi, chairperson of China Minsheng Bank, estimates that infrastructure financing demand along the B&R will amount to $10 trillion in the next five years.

(Source: Xinhua)