Chinese investment in Central and Eastern Europe will get a further boost from the new Sino-CEE Fund, which could deploy as much as 10 billion euros.

Sino-CEE is an arm of state owned Industrial and Commercial Bank of China (ICBC), and was formally unveiled during Chinese Premier Li Keqiang's recent visit to Latvia. It will focus on infrastructure, hi-tech manufacturing and consumer industries. 

The new fund is backed by government resources, but will be managed according to a commercial strategy by ICBC Asia.

China is heavily involved in CEE infrastructure, notably in the power generation and transport infrastructure areas, but also increasingly in consumer industries.

Last week CEFC China acquired the largest office building in Prague to serve as its European headquarters. Known as Florentinum, the office complex was built by private equity group Penta. Local Czech newspapers put the price tag at US$311 million.

Over the past year CEFC has acquired a number of assets in the Czech Republic, including a majority stake in a brewery, an online travel agent and a majority stake in leading football club Slavia Prague.

Poland is likely to be another major target for new investments from China over the next twelve months.