First Private Investment Company Begin Operations to Tap the Consolidation Trend in China
The country’s first national level private investment company China Minsheng Investment Corp. started its operations Thursday, which marked its ambitious plan to tap into the consolidation trend in China. Endorsed by the State Council in April the cabinet has a registered capital of around 50 billion yuan and is funded by the top 59 private Chinese companies and among the 2,000 listed companies, only seven of these companies have a registered capital which exceeds 50 billion yuan.
These Shanghai based firms is fast becoming a competitive international investment company in just five years. The establishment of the firm came as the government has pledged to support the development of the first non public economy in their bid to put the much needed vitality in the slowing economy.
China Minsheng Investment is now seeking to invest more in the industry that undergoes consolidation because of over capacity, which include the photovoltaic power generation industry, the ship building sector, and the steel industry. The company is also setting its eyes in creating a property development firm which will be made public in five years time along with the investment in the aviation sector as well.