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A new fund valued at CNY 51 billion (approximately USD 7.2 billion) has been established to support central state-owned enterprises in accelerating the development of strategic emerging industries. The fund is managed by China Reform Holdings, a state-owned investment firm, and was initiated by the State-owned Assets Supervision and Administration Commission. It officially launched in Beijing on October 27.
This fund will focus on vital sectors such as artificial intelligence, aerospace, high-end manufacturing equipment, and quantum technology. Additionally, it will target key future industries including energy, information technology, and manufacturing. The goal is to help state-owned enterprises address industrial weaknesses, invest in cutting-edge innovations, and strengthen their core capabilities.
During the launch, a deputy director emphasized that the fund should adopt innovative approaches in positioning, organizational structure, and mechanisms. Its primary aim is to facilitate the development of high-quality productive forces, support the growth of strategic emerging industries within state-owned enterprises, and better align capital with industrial and innovation chains to promote economic restructuring and optimization.
China Reform plans to contribute around CNY 15 billion initially. Other contributors include over a dozen central state-owned enterprises, such as China Mobile, China Petrochemical, China National Offshore Oil, and China National Petroleum, along with the Xicheng district of Beijing.
The fund has a five-year investment period, which can be extended by up to two years, and a management and exit period lasting eight years, making the total lifespan of the fund 15 years. China Reform was designated in early 2016 as a pilot company for state-owned capital operations by the State Council’s leading group for SOE reform.
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