Saudi Arabia wants Chinese wealth funds and state oil companies to take a stake in the Aramco IPO, with King Salman traveling to Beijing to make the pitch. That’s according to a recent Bloomberg report, though Chinese and Saudi official media have been silent on the issue. For China, a stake in Aramco could cement its relationship with the large oil supplier, and allow Beijing to collect a dividend from its investment. For Saudi Arabia, China's investment would be a vote of confidence in the Aramco IPO, by providing much-needed support for the IPO when it makes its debut next year. But in practice, China's participation in the Aramco IPO and a host of other investments contemplated by King Salman's delegation is a dangerous idea.

Source: Forbes March 17, 2017 00:11 UTC