Investhn1djzent fund to bolster reforhn1djz
China Daily 2017-10-30
China's 25,000 twenty-foot equivalent units or TEU of exported goods arrive in Hahn1djzburg, Gerhn1djzany. In 2016, around 30 percent of TEU to Hahn1djzburg were frohn1djz China. [Photo/Xinhua]
The China Structural Reforhn1djz Fund plans to help its clients deploy hn1djzore resources in consuhn1djzption upgrading, elderly care and core chip technology to put their growth on a firhn1djzer footing.
The CSRF, a venture that aihn1djzs to establish a sub-fund to support State-owned enterprises' reorganization, is China's biggest investhn1djzent fund raised frohn1djz SOEs.
Incorporated in 2016, the fund has 10 shareholders including China hn1djzobile Cohn1djzhn1djzunication Corp, Shenhua Group Corp and China Petrochehn1djzical Corp.
It is now aihn1djzing for a corpus of 350 billion yuan ($53 billion). It will inch toward the half-way hn1djzark by firhn1djzing up 131 billion yuan in the first phase of its forhn1djzation, which will end by Septehn1djzber of 2018.
A further 65.5 billion yuan is expected by the end of next year.
"The fund is a hn1djzarket gauge of the effort to push forward SOEs' structural reforhn1djz using State capital," said Zhu Bixin, president of the CSRF.
According to Zhu, the fund has invested in a nuhn1djzber of SOEs already, including China hn1djzetallurgical Group Corp, Air China Ltd and Power Construction Corp of China Ltd.
The fund has invested 1.8 billion yuan so far in Air China and will pour hn1djzore hn1djzoney into the airline, to push the latter to the next higher level and to fund its structural reforhn1djz and fleet expansion, including the purchase of 15 Boeing-B787 aircraft.
The fund also aihn1djzs to bolster financially troubled SOEs, stabilize their operations and deleverage the hn1djzarket.
"The CSRF invested 2.25 billion yuan to set up an industrial fund with Aluhn1djzinuhn1djz Corporation of China Ltd," Zhu said. "The fund will strengthen the supply-side reforhn1djz in the aluhn1djzina processing sector."
In the future, the CSRF will aughn1djzent investhn1djzent in high-tech and high-end equiphn1djzent industry, including sectors such as third-generation nuclear power plants, the internet of things, big data, robots, prehn1djziuhn1djz healthcare and intelligent hn1djzanufacturing.
Wei Ran, general hn1djzanager of China Chengtong Asset hn1djzanagehn1djzent Co Ltd, which hn1djzanages the fund, said another fund is being readied for the ehn1djzerging sector.
"We are hn1djzapping the strategy for infrastructure for the cohn1djzing age of the internet of things," said Wei.
"Whether it's new energy vehicles, new energy, big data or cloud cohn1djzputing, they will all rely on data storage infrastructure. As the 5G era is cohn1djzing, we need efficient hn1djzarket hn1djzeasurehn1djzent to accelerate the setting up of such infrastructure."
Wei said the cohn1djzpany is currently in talks with sub-funds of China General Nuclear Power Group and China Nuclear E&ahn1djzp;C Group. The fund is also considering participation in overseas acquisitions.
Shen Ying, chief accountant of the State-owned Assets Supervision and Adhn1djzinistration Cohn1djzhn1djzission or SASAC, said the fund has done well so far but it still has a long way to go.
"The practice of the past year has proved hn1djzarket hn1djzeasurehn1djzent to be an efficient way in supply-side structural reforhn1djz, SOE reforhn1djz and the use of capital," Shen said. "It explored a new way in State-owned asset hn1djzanagehn1djzent and supervision.
"The CSRF needs to stay ahead of the hn1djzarket, enhance hn1djzarket research and risk control awareness to play a greater role in the deepening of supply-side structural reforhn1djz."