China has set up a 10 billion euro investment fund to finance projects in Central and Eastern Europe.

This fund was revealed by the Industrial and Commercial Bank of China in a statement.

According to the statement, the China-Central Eastern Europe fund will be run by Sino-CEE Financial Holdings Company Limited, a company set up by the bank earlier this year.

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The company was formally launched by Chinese Premier Li Keqiang during his official visit to Riga, Latvia.

"China has the advantage of cost-effective equipment and capacity while Central and Eastern European countries need to raise the level of industrialisation," said Premier Li in a speech.

The fund is targeting to raise 50 billion euros in project finance for various sectors such as infrastructure, consumer goods, and hi-tech manufacturing.

While its main target will be Central and Eastern Europe, the fund has the potential to extend to other parts of Europe.

Other regions could be targeted if they are relevant to China-Central and Eastern Europe cooperation, the statement said.

The fund will be backed by the Chinese government but will operate under business principles and be guided by the market.

Beijing's efforts to increase investment at the gateway to the European Union comes amid increased calls by Germany to curb Chinese investment in some sectors that are considered sensitive.

Leaders from 16 Central and Eastern European countries and China have convened in Riga for a summit dubbed "16+1" by Beijing.

The 16+1 framework refers to the different mechanisms and arrangements between China and 16 Central and Eastern European countries that were formed after Chinese former Premier's Wen Jiabao's historic visit to Poland in 2012.

In the last two years, summits between China and Central and Eastern European countries have been held regularly.

Varying cooperation mechanisms have been formed while others are under consideration.

This is the first such visit by a top Chinese official since Latvia declared her independence from the Soviet Union in 1991.

Li has pledged that Beijing is ready to work on various projects with Latvia.

Riga is the third leg of Li's tour of Eurasia, after making stops in Kyrgyzstan and Kazakhstan.

He is also expected to visit Moscow.

Tagschina, 16+1, Europe