People's Bank of China (PBOC) has reported in a statement that a Silk Road Fund designed to finance the China-proposed "Belt and Road" initiatives has begun operation.

President Xi Jinping announced the creation of the US$40 billion fund in November 2014, later on 29 December 2014 the fund was established. The fund will be focused on infrastructure, resource development, as well as industrial and financial cooperation.

According to the statement, the priority of the fund is to seek investment opportunities and provide investment and financing services during the progress of the Belt and Road Initiatives. "Belt and Road" refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives proposed by China in 2013 for improved cooperation with countries in Asia, Europe and Africa.

The company was jointly backed by:

• China's foreign exchange reserves
• China Investment Corp.
• Export-Import Bank of China
• China Development Bank (CDB).

During the first phase, the found raised US$10 billion, with foreign exchange reserves taking up 65%, CDB 5% and the other two companies each investing the remaining 15%.

PBOC governor Zhou Xiaochuan said the other institutions can invest in the fund's second and third phase as long as they can make a long-term commitment.