HONG KONG (Reuters) - Beijing is enlisting the private sector to accelerate the rise of its once backward defence industry, already transformed by more than two decades of soaring military spending.
Listed subsidiaries of China's top ten Chinese military contractors intend to buy at least 20 billion yuan in assets from their state-owned parents, according to their filings with the Shanghai and Shenzhen stock exchanges.
This would double the value of military related assets injected into these listed companies since 2007 with more in the pipeline.
Following is a list of China's top ten defence groups, with estimated combined assets of 2 trillion yuan, about 25 percent of which are now held in their listed companies, according to market analysts.
Aviation Industry Corp of China (AVIC)
Makes aircraft for civilian and military uses, including bombers and fighter jets. Has around 400,000 employees. Makes China's self-developed ARJ21 regional jet and C919 commercial passenger jet. The company, which is shooting for sales of 1 trillion yuan in 2020, has more than 20 listed units, such as AviChina Industry & Technology Co Ltd (2357.HK) and AVIC HAIG (600038.SS).
China Aerospace Science and Technology Corp
The major contractor for China's space programme. Total profit of 7 billion yuan on revenue of 70 billion yuan in 2009. Has eight listed companies, including China Spacesat Co Ltd (600118.SS) and Shanghai Aerospace Automobile Electromechanical Co Ltd (600151.SS).
China Aerospace Science & Industry Corp
Mainly engaged in the research and development of missiles. Has six listed subsidiaries, including Guizhou Space Appliance Co Ltd 002025.SZ and AISINO Co Ltd (600271.SS).
China North Industries Group Corp Norinco Group
Military focus is research and development of weapons and equipment for land forces. Controls a dozen listed units, such as Liaoning Huajin Tongda Chemicals Co 000059.SZ and Baotou Beifang Chuangye Co Ltd (600967.SS). Generated profit of 8.65 billion yuan on revenue of 307.7 billion yuan last year.
China South Industries Group Corp
Makes weapons and equipment for land forces, as well civilian products ranging from motorcycles to special steel. Has a dozen listed units, including automakers Jiangling Motors 000550.SZ and Changan Automobile 000625.SZ which both have joint ventures in China with Ford Motor (F.N).
China Electronics Technology Group Corp
Specializes in research, development and production of large-scale electronic systems and software. Has six listed units, including Anhui Sun-Create Electronics Co Ltd (600990.SS) and Shanghai East-China Computer Co Ltd (600850.SS).
China Shipbuilding Industry Corp(CSIC)
Manufactures civilian and military ships and offshore equipment, including submarines and missiles destroyers in northern China shipyards. Posted total profits of 6.23 billion yuan on revenue of 103.4 billion yuan in 2008. Has 140,000 employees and total assets of 222 billion yuan at end-2008. Listed units include China Shipbuilding Industry Co Ltd (601989.SS) and Fengfan Stock Co Ltd (600482.SS).
China State Shipbuilding Corp (CSSC)
Also manufactures civilian and military ships and offshore equipment, including submarines and missiles destroyers. Headquartered in Shanghai and runs major shipyards in eastern and southern China. Listed subsidiaries include China CSSC Holdings Ltd (600150.SS), Guangzhou Shipyard International Co Ltd (0317.HK) and CSSC Jiangnan Heavy Industry Co Ltd (600072.SS).
China National Nuclear Corp
China's major nuclear power investor and producer; also involved in research of nuclear weapon technology. Listed units include SUFA Technology Industry Co Ltd 000777.SZ and CNNC International (2302.HK).
China Nuclear Engineering Group Co
China's main construction contractor for China's civilian and military nuclear projects. Listed subsidiary is China Nuclear Engineering Corp Ltd (601668.SS).
Reporting by David Lague and Charlie Zhu; Editing by Bill Tarrant