China to encourage private capital to enter civil aviation market
On June 28, Xi'an National Aviation Industry Fund Investment Management Company Limited (Xi'an Company), China's first national-level aviation industry fund management enterprise, officially opened for business in Xi'an. This marks a major change to the tradition of China's aviation industry having to rely solely on state special funds for development. The move is a landmark in the history of the development of China's aviation industry.
The company's establishment marks the launch of China's first national-level aviation industry fund and it's fundraising. Private capital will be encouraged to enter China's civil aviation industry through market-oriented operations. This will change the current situation in which investment in China's aviation industry comes solely from the state.
The Xi'an National Aviation Industry Fund, with an expected scale of 30 billion yuan, was jointly initiated and organized by a group of enterprises led by Xi'an Yanliang National Aviation Hi-tech Industrial Base. Over 60 percent of the fund will be used to promote the development of the aviation industry and invest in a number of enterprises and projects with development potential within the five national-level aviation industrial bases in Xi'an, Harbin, Shenyang, Chengdu and Anshun.
Xi'an Company was formally registered on May 12, 2009, with a paid registered capital of 300 million yuan.
Judging from foreign countries' experience of using private equity to develop their aviation industries, the capital market plays a significant role in promoting the development of the global aviation industry, Jin Qiansheng, chairman of the board of Xi'an Company, said.
