context: SOEs are seeking to concentrate more of their investment in forward-looking strategic emerging industries. Shen Zhiqun 沈志群 Investment Association of China vice-president recently stressed that GGFs (government guidance funds) should guide, but not lead investment.
A policy package to support SOEs (state-owned enterprises) in strategic emerging industries is being prepared, and it includes establishing special funds for this purpose, reports Securities Times.
The report highlights that a new fund under the China Structural Reform Fund, managed by China Chengtong, raised C¥31.5 bn in late July. The new fund will focus on strengthening in-depth research and investment layout for strategic emerging industries and future industries, says Zhu Bixin 朱碧新 China Chengtong chairman. It will support key enterprises in intensifying efforts to tackle critical core technologies, promoting these companies to become world-class enterprises and extending the length of the modern industrial chain, he says.
The report also notes that national capital operators already have special funds for such purposes, namely
- China Structural Reform Fund has committed 60 percent of its C¥150 bn capital to strategic emerging industries
- China Reform (Guoxin) has invested C¥260 bn in strategic emerging sectors, including C¥98 bn across 224 strategic emerging-industry projects from their China New Fund