Chinese State-Owned Firms Establish $1.4 Billion Fund
By P.R. Venkat
Two Chinese state-owned companies will establish a 10 billion yuan ($1.41 billion) fund to invest in companies with real estate project assets.
Under the agreement, New China Life Insurance will be the limited partner providing CNY9.9 billion in capital and China International Capital Corp. will act as general partner that will manage the fund, New China Life said late Monday.
CICC will contribute the remainder of the amount.
The fund is being established at a time when China's property sector is weak due slowing home sales, leaving many companies with significant inventories.
Despite a slew of stimulus measures from Beijing targeting the real-estate sector, severe debt issues and lackluster property sales have continued to plague developers.
New China Life said establishing the fund wouldn't affect its normal operations but would help diversify the company's assets under management.
The fund's term is for eight years, which can be extended.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
January 01, 2024 19:55 ET (00:55 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
5 Things We Learned From the Q1 Earnings Season
-
After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
What’s Happening In the Markets This Week
-
Can the Fed Declare Victory on Inflation?
-
After Earnings, Is Coinbase Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?
-
Is ServiceNow Stock a Buy After Earnings and Its Investor Day?
-
3 Stocks to Buy and 3 Stocks to Sell After Earnings
-
Today’s Market Volatility Could Provide Tomorrow’s Opportunities
-
40 of the Best Investment Picks
-
Tech Stock Dividends Are Changing the Face of Dividend Growth Investing
-
Roblox Earnings: Weakening Engagement Has Weighed On Growth
-
The Best Gaming Stocks to Buy
-
Energy Transfer Earnings: M&A Drives Guidance Increase In Solid Quarter
-
The Best Healthcare Stocks to Buy
-
Going Into Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?