The National Development and Reform Commission has given the
go-ahead for the 10-billion yuan ($1.36 billion) Guangdong Nuclear
Power and New Energy Industrial Investment Fund, a private equity
(PE) fund.
Three companies, China Guangdong Nuclear Power Group (CGNPG),
Ping An Trust Co and China Cinda Asset Management Corp, will form a
management company called Guangdong Nuclear Power and New Energy
Industrial Investment Fund Management Company.
It is the first time a trust and asset management company have
joined the management of a yuan-denominated PE fund, approved by
the country's top economic planner.
The fund is expected to provide financial support for firms and
businesses in the nuclear power and new energy industries
nationwide.
China Development Bank, the country's top policy bank, and China
Life Insurance Co, the nation's largest insurer, are expected to be
among its sponsors.
The only candidates for yuan-denominated PE funds are
State-owned financial firms including banks, insurers and brokerage
firms, according to the National Development and Reform
Commission.
Experts said problems including a rigid registration and
approval system for PE funds and fund managers' lack of experience
have hampered the development of PE sector in the country.
Established in September 1994 with registered capital of 10.2
billion yuan, CGNPG is a State-owned nuclear power enterprise under
the State-owned Assets Supervision and Administration
Commission.
CGNPG comprises of a core company, China Guangdong Nuclear Power
Holding Co, and over 20 subsidiaries and owns Daya Bay Nuclear
Power Station and Ling'ao Nuclear Power Station.
Established in 1996, Ping An Trust Co is one of the subsidiaries
of Ping An Insurance (Group) Company of China.
It increased its capital base with registered capital rising to
2.7 billion yuan in October 2003, making it the one of the biggest
trust companies in the country.
China Cinda Asset Management Corporation was established in
April 1999. With registered capital of 10 billion yuan, the
corporation is the country's first financial assets management
company.
(China Daily December 14, 2007)
