$20 billion Defense Industry Investment fund approved to prepare management company

December 17, China National Defense Science and Technology Industry Enterprise Management Association (hereinafter referred to as the military enterprises) Secretary-General Li Hongyan told our correspondent, for the defense industry Enterprises Restructuring of the Special fund-Defense Industries Investment fund in early December, the country has been approved by a number of departments, in the completion of the Military Enterprises Association. "The size of the fund is 20 billion.　　"Li Hongyan said. Reporter learned that the fund management company is still in the preparatory stage. The involvement of the agency in the administration has not yet been determined. However, "the establishment of a management company of 200 million dollars has been in place." "We certainly want financial institutions to manage with us," he said. But we have a threshold for that. "The institutions that want to participate are big, have high capital ratios and have a good social reputation," Li Hongyan said. "According to the disclosure, there are a lot of companies that want to be invested and there are still no investment projects."　　The original intention of the Military Enterprise Association to launch the investment fund is to use capital funds to promote the market process of Chinese military enterprises. Before Li Hongyan in the interview with this newspaper has stressed, "How to start from our reality, learn from the advanced experience of foreign developed countries to promote the military industry as soon as possible with the capital market, is the government departments, financial industry, military enterprises, private entrepreneurs and other common problems." According to Li Hongyan, according to the research results of the Military Industry Association, there are two contradictions in the military industries are very common and prominent. On the one hand, military enterprises in the joint-stock reform process is encountering a lot of difficulties, financial difficulties are particularly prominent, a number of military enterprises on the "reform costs who to pay the bill" question;　　However, the reform of the military enterprises involved a lot of Bao Jun security issues, intervention without a door.　　Li Hongyan explained that the fund will be together with the military group to raise funds needed for the fund.　　The National Defense Industry Investment Fund was scheduled to be launched in the "2008 China Military Capital Forum", but it lasted 21 months from preparation to approval.　　According to the reporter understand, March 2008, the Military Enterprises Association began to start on the establishment of the military industry funds of the preliminary research and discussion, after the Military Enterprises Association of Joint-Stock Reform Committee directly responsible for this matter. May 2008, the Military Enterprise Association and the Great Wall securities work together; in July 2008, the Military Enterprise Association held a symposium on the preparatory work of the military Restructuring fund in the interior.　　At that time, the high level of the Military Industry Association stressed the importance of using social capital to enhance the military capability, and expounded the background of the Reform Fund, the position of the fund, the investment object, the source of funds, the operation mode and the fund management. Reporters from the Great Wall securities informed people know that the defense Industry Investment Fund is intended to play a similar model to the Bohai Industrial fund-is expected to be in the early stage of restructuring or before the IPO intervention, and through the listing and other means of exit.