China Aerospace Science and Technology Corp Creates a Mega $21 Billion Dollar Fund

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Beijing-based China Aerospace Science and Technology Corp designs and manufactures a range of spacecraft, launch vehicles, strategic and tactical missile systems, and ground equipment and is also the main contractor for the Chinese space program. The company has partnered with a number of state-owned enterprises to create a whopping  US$21.78 billion  fund to invest in cutting edge technologies.

Not all of $21 Billion will be raised in one go , but rather , The fund which is being called State-Owned Enterprises China Innovation Fund, has a fundraising target of US$16 billion for its first phase.

The new fund adds to an expanding pool of government guidance funds that saw 901 vehicles established in 2016 with an aggregate fundraising target of US$347 billion. As of the end of 2016, there are 44 guidance funds with fundraising targets of over US$1 billion, aiming to raise a total of US$180 billion.

Like other guidance funds, the State-Owned Enterprises China Innovation Fund secured backings from state-owned enterprises and banks. Rail transit equipment supplier CRRC Co. Ltd., Chinese investment firm China Reform Holding Co. Ltd., Industrial and Commercial Bank of China, Postal Savings Bank of China, Shanghai Pudong Development Bank Co. Ltd. and the Beijing government committed to the fund as limited partners.

The vehicle will focus on clean energy, new energy vehicles, quantum teleportation, 3D printing, robotics, graphene, biomedicine, energy saving and environment protection sectors, with an aim to enhance the innovation capability of state-owned enterprises, assist develop emerging industries, as well as push for collaborative innovation between state-owned enterprises and other institutions.

Aerospace Capital, an investment arm of China Aerospace Science and Technology, has established a total of eight industrial funds, raising over US$28 billion in total. The funds have invested a total of over US$5 billion in 116 programs.

 

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