Watch VideoPlay Video
China's aviation industry is welcoming private capital into a newly established fund, in order to allow the sector to become more market oriented. China Construction Bank and the Aviation Industry Corporation of China opened the fund in Tianjin this week, to boost development.
The China Aviation Industry Fund will be managed by the Yufeng Fund Management company. It's composed of subsidiaries of the Aviation Industry Corporation, or AVIC, and China Construction Bank.
The fund hopes to raise up to 5 billion yuan in its initial stage. The long term target is 20 billion yuan, making it China's biggest industry fund.
|China's aviation industry is welcoming private capital into a newly established |
fund, in order to allow the sector to become more market oriented.
The company says it welcomes private capital, as it helps to make the state run industry more market oriented.
Wei Xiaolong, Deputy General Manager of AVIC Capital said "We welcome private funds to enter the industry. It will help marketize the aviation industry."
The aviation fund will be used for national defense research and the development of dual-use technologies.
It's also likely that private funds will help manufacture China's large aircraft in the future.
Wei Xiaolong said "We are still investigating how to invest in the large aircraft industry. But we will definitely put money into this area."
The China Aviation Industry Fund is China Construction Bank's third industry fund. The lender also plans to establish a culture industry fund and mining fund this year.