Hunan Sets up SOE Reform Fund

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Hunan officially set up its first state-owned enterprises (SOEs) reform fund on Dec. 2, marking the launching of capital operation for the reform and development of SOEs.

The fund mainly focuses on incremental business of Hunan's high-quality state-owned resources, including services of overall listing, merging and acquisition and private placement, so as to permeate the reform and development of SOEs step by step. The initial fund consists of 3 billion yuan of mother fund and 12 billion yuan of sub-funds.

Hunan Light Salt Venture Capital Management Co., Ltd., Hunan State-owned Asset Management Co., Ltd. and CCB Trust Co., Ltd. all contributed to the first mother fund, which was initiated by Hunan Xiangtou Holdings Group Co., Ltd. with an investment of 1.5 billion yuan. The target-date of mother fund is tentatively fixed at six years, of which the first four years is investment horizon and the rest two years is payback period. The mother fund is accumulated by implementing equity investment approach, and states funds can leverage the sub-funds raising from private capitals. The mother fund can also be used to finance enterprises affiliated to Hunan Provincial People¡¯s Government. The principal shareholders of the mother fund established a new fund management company, which is administrated by Xiangjiang Industrial Investment Co., Ltd., a subsidiary of Hunan Xiangtou Holdings Group Co., Ltd.

Chinese source: hunan.gov.cn