Central China's Henan Province plans to set up a large
State-owned investment vehicle to help boost the underdeveloped
province.
The investment company, with a registered capital of 12 billion
yuan, will provide investment and financing to power local
industry.
The provincial government will merge three State-owned companies
- Henan Construction Investment (Group), Henan Science and
Technology Development Corp and Henan Economy and Technology
Development Co - to form the new investment group.
The new company, Henan Investment (Group) Co Ltd, has already
received provincial government approval, sources said. But its
launch date is not yet available.
The new company's assets could total 29.3 billion yuan if the
mergers are completed.
Henan Province, a major agricultural manufacturing base in
China, is trying to build a "hi-tech and high value-added
economy".
The move comes as the provincial government tries to merge large
State-owned companies in industries like coal, chemicals and
food.
The company is expected to provide funding for firms in the
province's key industries including electronics, bioengineering,
special machinery equipment, auto and auto parts and chemicals.
Henan Construction Investment (Group), an unlisted company, is
the majority shareholder of three domestic listed companies - Henan
Yuneng Holdings Co Ltd, Henan Ancai Hi-tech Co Ltd and Henna Tongli
Cement Co Ltd.
Established in 1992 by the provincial government, the company
has invested in 65 projects including a city bank. Its assets total
3.4 billion yuan.
Henan Science and Technology Development Corp had total assets
of 77.16 million yuan at the end of last year and posted a net
profit of 1.21 million yuan.
Henan is aggressively promoting investment in coal,
environmental protection, energy saving, refinery machinery and
hi-tech industries in a bid to revive the local economy.
(China Daily October 24, 2007)
