• Facebook
Policy, Private Equity

China Reform To Jointly Set Up $21B State-Owned Enterprise Reform Fund

Follow China Money Network on Facebook, Twitter and LinkedIn.

Guangzhou Industrial Investment Fund Management Company, China Reform Holdings Co., Ltd and Shanghai Pudong Development Bank Co. Ltd. have jointly established a RMB150 billion (US$21 billion) investment fund geared to invest and support reforms of state-owned enterprises, according to an announcement.

The first phase of the vehicle, named China Reform SOE Operating Investment Fund, will obtain capital allocations of RMB50 billion (US$7 billion) from the three state-owned entities.

Pudong Development Bank will contribute RMB30 billion (US$4 billion), while China Reform, an entity established by the State Council in 2012 tasked to manage bad assets from state-owned enterprises and restructure failing state-owned corporations, will contribute RMB10 billion (US$1.4 billion).

Guangzhou Industrial Investment Fund, a government guidance vehicle set up by the Guangzhou government to support industry upgrade in the city, will also contribute RMB10 billion (US$1.4 billion).

The newly established fund will seek to complete investments in three to five years. It aims to support the development of state-own enterprises and improve their operation efficiency by consolidation, securitization, deepening reforms and leveraging the capital markets.

China Reform has RMB150 billion (US$21 billion) in assets as of the end of 2015. It previously established a venture capital fund in Shenzhen’s Qianhai special economic zone with registered capital of RMB100 billion (US$15 billion) to support technology innovation at state-owned enterprises, especially those owned by the the central government.

Related News

Leave a Reply

Your email address will not be published. Required fields are marked *