State Asset Manager Plans $14bn Fund

Aimed at bolstering investments in emerging industries, China Reform Holdings Corp, a prominent Chinese manager of state assets, is reportedly preparing to mobilise a substantial sum of at least 100 billion yuan (US$13.70 billion). This move aligns with China’s broader agenda to fuel innovation and growth in pivotal sectors. The report surfaced in the China Business News on Sunday, shedding light on the impending launch of this formidable fund.

Sources suggest that the fund has already garnered significant interest, with over 20 central government-owned enterprises, local governments, and private investors expressing their intentions to participate. Anticipated to commence operations before the end of the current year, the fund is poised to play a pivotal role in advancing China’s strategic interests in key areas of the economy.

China’s state-owned enterprises (SOEs) have been increasing their investments in emerging and strategic industries as part of the comprehensive SOE reforms initiated by Beijing. This concerted effort encompasses critical sectors such as artificial intelligence, new energy, new materials, and biotechnology. The fund, spearheaded by China Reform Holdings, is a testament to the nation’s commitment to fostering innovation and technological prowess.

China Reform Holdings, established in 2021, is entrusted with the pivotal mission of driving profound reforms within SOEs. As of the close of 2022, the company’s portfolio managed an impressive sum of nearly 860 billion yuan in assets, as documented on the company’s official website.

The magnitude of this forthcoming fund underscores China’s determination to stimulate growth and innovation across various sectors, with an emphasis on cutting-edge technologies and industries of strategic importance. The participation of both government-owned entities and private investors underscores the broad-based support for this strategic initiative.

As China Reform Holdings gears up to launch this ambitious fund, the global financial community will be keenly watching its progress. The allocation of significant financial resources towards emerging industries signifies China’s relentless pursuit of technological advancement and economic diversification.

With the fund’s expected activation by the year-end, it heralds a new chapter in China’s economic transformation journey. As the world continues to grapple with evolving economic dynamics and global competition, China’s proactive approach to nurturing its domestic industries will undoubtedly have far-reaching implications, both domestically and internationally.

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