IB Participated in Establishing Military-Civilian Integration Fund with an Initial Scale of RMB 30.2 Billion
Recently, Guohua Military-Civilian Integration Development Fund (hereinafter called as “Military-Civilian Integration Fund") was set up in Beijing with an initial scale of RMB 30.2 billion mainly invested in military industry and relevant industries and other strategic emerging industries, covering reform of enterprises and institutions specializing in production and operation under military groups, major military equipments projects, military asset securitization, military-civilian integration projects and reforms of SOEs.
Military-Civilian Integration Fund was set up by some central military enterprises including Aerospace Investment Holding Co., Ltd. under China Aerospace Science and Technology Corporation, China National Nuclear Corporation, and China North Industries Group Corporation, as well as well-known financial institutions in China, like IB. Among them, IB is one of the largest investors with subscribed capital contribution of RMB 5 billion.
On July 21th, Comments on the Integration of Economic Development and National Defense Construction, co-released by the CPC Central Committee, the State Council and the Central Military Commission, put forward eight initiatives, i.e. push forward specialized regroup of military enterprises, introduce more non-governmental capital, promote mixed ownership reform and advance low-altitude airspace reform etc. The fund facilitates the implementation of military-civilian integration development strategies.
“‘Only by developing other supporting industries can finance thrive’, industries and finance can co-exist and are interdependent.” IB’s Deputy Governor Chen Xinjian said that fund will be raised by Military-Civilian Integration Fund to meet the needs of China Aerospace Science and Technology Corporation and reforms of central military enterprises, a new way to realize the integration between central enterprises and financial institutions.
An insider said that through investment operation, Military-Civilian Integration Fund speeds up the transformation of military scientific and technological achievements and promotes market-oriented and large-scale development of military industries. It will give a fresh impetus to the in-depth development of military-civilian integration in defense science and technology industry.TOP