(Yicai) Jan. 26 -- A number of Chinese institutions have established a CNY40 billion (USD5.6 billion) fund to help central state-owned enterprises revitalize their assets and expand investment.

The fund was jointly set up in Beijing yesterday by China Reform Holdings, China Cinda Asset Management, China Orient Asset Management, and China Great Wall Asset Management after being approved by the State-Owned Assets Supervision and Administration Commission. China Reform invested CNY13 billion, and the remaining three CNY9 billion (USD1.3 billion).

The fund will mainly invest in infrastructures of central SOEs with large assets and great growth potential, including non-major business and non-advantage assets of listed firms, idle land worth developing and using, patent technologies, and operating assets of administrative institutions, to support central SOEs in developing their main business and advantages.

The fund was established to launch a new round of activities to further reform SOEs and optimize the distribution of state-owned capital, said Xie Xiaobing, head of the Bureau of Property Right Management of the SASAC.

SOEs should revitalize long-idle assets, consolidate non-major business assets by agreed transfer, free transfer, asset swap, and collaborative consolidation with the help of state-owned capital investment and operation companies, and provide medium- and long-term financial support by issuing bonds to qualified state-owned capital investment and operation companies to help them revitalize assets, the State Council said in the Opinions on Further Revitalizing Stock Assets and Increasing Effective Investment issued in May 2022.

China Reform formed asset management platform China Reform Asset Management in May 2018 to take over or be entrusted with central SEOs’ non-major business and non-advantage assets to dispose of them by equity transfer, bankruptcy liquidation, and liquidation.

Editor: Futura Costaglione