China initiates a $52.5 billion restructuring fund for state-owned companies
In China, a private equity fund worth 350 billion Yuan has been launched in order to help with the restructuring of state companies, as a newspaper run by Xinhua news agency posted on Monday.
The China State-owned Enterprises Restructuring Fund is going to be managed by the State-owned Assets Supervision as well as Administration Commission, according to the Economic Information Daily.
The report told that 10 state-owned enterprises have already established a special fund to help with restructuring of state companies, such as M&A deals, as part of the government’s effort to advance supply side reform.
The 10 companies have already provided initial registered capital of about 131 billion Yuan, as the newspaper informed.
The 10 firms include China Mobile Ltd,China Petroleum & Chemical Corp, China Railway Rolling Stock Corporation as well as China Chengtong Holding Group Ltd.
China is actually embarking on a revamp of its huge, though debt-ridden state sector, that has struggled under a system, requiring companies to maximize revenues while fulfilling government policy goals.