350 billion state-owned enterprise restructuring fund was established
Assisting the merger and reorganization of central enterprises in nonferrous industries
On September 26, the founding meeting and unveiling ceremony of China State owned Enterprise Restructuring Fund Co., Ltd. was held in Beijing. This is a "national level" fund approved by the State Council, with a total size of 350 billion yuan. The first phase raised 131 billion yuan. It is also the largest equity investment fund in China. So far, the two funds determined by the new round of state-owned enterprise reform - the state-owned capital venture capital fund and the state-owned enterprise restructuring fund have all been released.
The China State owned Enterprise Restructuring Fund, led by Chengtong Holding Group Co., Ltd., a pilot enterprise of a state-owned capital operation company, was jointly established with Postal Savings Bank of China, China Merchants Bureau, China North Industries Group, Sinopec, Shenhua Group, China Mobile, CRRC, China Communications Construction and Beijing Financial Street Investment (Group) Co., Ltd. Service supply side structural reform, support state-owned enterprises in key industries to implement industrial integration and professional restructuring, promote the transformation and upgrading of state-owned enterprises, improve quality and efficiency, and become stronger, better and larger are the main tasks of China's state-owned enterprise structural adjustment fund.
The Fund will focus on four areas:
First, strategic investment. It focuses on major projects, industrial basic scientific research or national major special tasks in important industries and key fields involving national security and the lifeblood of the national economy, such as defense and military industry, strategic material reserve, oil and gas trunk pipeline network, power grid, communication infrastructure, strategic mineral resources development and utilization, etc. The investment strategy is that the Fund will support the central enterprises to implement investment projects in these areas, focus on the investment needs of the project leader, provide financing support in a flexible and diverse way, and obtain relatively stable investment returns. For example, we can consider obtaining stable dividend and debt interest income in the form of preferred shares and creditor's rights, and prepare a relatively long investment holding period. Among them, for major strategic investment projects beneficial to national interests, long-term strategic investment strategies are not excluded.
Second, transformation and upgrading. The Fund will play a role as a platform and bridge to realize the connection between traditional industries and strategic emerging industries, consumption upgrading fields, high-quality assets and technologies of pension and health industries through mergers and acquisitions, and promote the transformation and upgrading of central enterprises; Promote the reorganization and integration of advantageous industrial groups and scientific research institutes, and increase the joint development of new technologies, new products and new markets; Build a financial platform and an international capacity cooperation platform to support the transformation and upgrading of enterprises; Take advantage of the fluctuations in the international economic cycle to conduct investment and merger of global resources and superior production capacity. The investment strategy is that for domestic and foreign target enterprises with strong technological and business model innovation capabilities and advantageous resource conditions, the Fund may consider implementing equity acquisition independently or jointly with relevant central enterprises.
Third, M&A and reorganization. Focus on assisting the strong and powerful alliance among central enterprises in the fields of equipment manufacturing, construction engineering, power, steel, non-ferrous metals, shipping, building materials, tourism and aviation services; Promote the central enterprises with advantages in coal, electricity, metallurgy and other fields to implement industrial chain integration and create competitive advantages in the whole industrial chain; Promote the professional reorganization and integration of central enterprises in the fields of communication, power, automobile, oil and gas pipeline, marine engineering equipment, air cargo, etc; Focus on supporting the domestic and overseas mergers and acquisitions carried out by advantageous central enterprises in order to obtain key technologies, strategic resources, well-known brands, market channels, etc., and cultivate a group of world-class multinational companies with innovation capabilities and international competitiveness. The investment strategy is that the Fund will cooperate with leading central enterprises in these fields to jointly implement M&A and restructuring projects. The Fund mainly makes financial investments, focusing on providing funds, professional advice and network resource support for industry integrators.
Fourth, asset management. We will focus on helping industries with overcapacity, such as steel, coal, electrolytic aluminum and cement, to "cut overcapacity", to clean up "zombie enterprises" and inefficient and ineffective assets, and to exit inefficient businesses and assets that are not complementary and synergistic with the main businesses of central enterprises.
Diversified capital composition, centralized investment, market-oriented operation and specialized management are the characteristics of China's SOE structural adjustment fund. The structural adjustment fund for China's state-owned enterprises adopts the organizational form of a joint stock limited company to establish a standardized corporate governance structure. The General Meeting of Shareholders, the Board of Directors and the Board of Supervisors shall be established to review and decide on major issues of the Fund and supervise the operation of the Fund. The State owned Assets Supervision and Administration Commission of the State Council established a fund coordination leading group to guide the work of the fund, supervise the implementation of the national strategy and coordinate relevant matters. Chengtong Fund Management Company will be entrusted to be responsible for fund raising, investment, post investment management and withdrawal, and implement professional management.