Fund set to boost emerging sectors
A 3-D printer produces a cup at the China Beijing International Fair for Trade in Services. Zhang Wei / For China Daily
China Aerospace Science and Technology Corp and several other State-owned enterprises jointly set up a 150-billion-yuan ($21.8 billion) fund on Tuesday, to bolster China's new emerging industries, which will play a key role in the nation's upgrading efforts.
The innovation-focused fund, led by Beijing-based CASTC, will target an array of high-tech sectors, including aerospace, nuclear energy, shipping, high-speed rail, quantum communications, 3-D printing and robotics, CASTC General Manager Wu Yansheng said at the launch ceremony.
Other partners include rolling-stock maker CRRC Corp Ltd, Industrial and Commercial Bank of China, Postal Savings Bank of China, Shanghai Pudong Development Bank and the Beijing municipal government.
The bulk of the capital will be directed to fund industries with a viable business model, huge market potential and the ability to remain globally competitive, Wu said.
China has been revamping its massive State-owned businesses through mergers and acquisitions, industrial upgrading and innovation. In September, the central government launched its largest private equity fund, worth 350 billion yuan, to finance SOE restructuring.
The fund, guided by the State-owned Assets Supervision and Administration Commission, is expected to raise initial capital of 113.9 billion yuan in the first stage.
Lei Fanpei, chairman of CASTC, said the fund's main objective is to fuel innovation in State-owned companies to make breakthroughs in core technologies, and accelerate the development of strategic emerging industries.
In this way, State-run companies will also improve their ability to coordinate their activities and share resources, Lei added.
In addition, the fund will explore partnerships with local governments and bring more vitality to competitive sectors. SOE projects could further integrate into local economies, and meet their growing needs.
Xiao Yaqing, head of the SASAC, said the country's top SOE regulator will continue to underpin the innovation funds.
He also called on related government departments to support the funds aimed at catalyzing SOEs' innovative activities, in order to enhance their product quality, improve operational efficiency and accelerate their transformation and upgrading.