88 Queensway Group

Image source PAOLO WOODS

The 88 Queensway Group is a relatively opaque group of companies operating from Hong Kong (many operate from the address 88 Queensway, hence the name). The Group has set up around 30 holding companies which have made investments across the USA, Latin America and Africa, primarily in Angola. The Groups two major investment vehicles are the International Fund Limited and China Sonagol Limited. CIFL is focused upon infrastructure projects, such as public housing, a new airport in Luanda, with a capacity of 13.1 million passengers a year and a hydroelectric project on the Kwanza River. China Sonagol is responsible for the Groups energy sector investments and has formed a joint venture with Sinopec for oil exploration in Angola.

According to the U.S. China Economic and Security Review Commission, the 88 Queensway Group have strong connections to the Chinese Ministry of Foreign Affairs (MFA), the Ministry of Public Security and Ministry of State Security, arguably making them an (hidden) arm of the Chinese State. State owned companies are not unusual in China, but the US China Economic and Security Review Commission are concerned about the opaqueness of the Chinese government's involvement in sensitive industries such as oil and gas. From a purely commercial point of view it is interesting to observe whether the investments are made for strategic (long term access to natural resources), or for profit making reasons, or most likely, a mixture of both.

Another subsidiary of the Group is Dayuan International Group which formed a partnership with a subsidiary of the Portuguese Bank Espirito Santo. The partnership was called China Beiya Escom International Limited. Beiya Escom then started a joint venture with Sonangol (the Angolan state owned oil company), this venture being called Sonangol Asia Limited (registered in Hong Kong).