BEIJING, April 7 China is aiming to raise as
much as 80 billion yuan ($11.60 billion) for a special
investment fund to help finance the restructuring of its steel
industry, a statement said on Friday.
The fund will be run by a management vehicle in which top
Chinese steelmaker China Baowu Steel Group, the
U.S.-China Green Fund and China Merchants Group have
each contributed 1 billion yuan as seed capital, a statement
issued by the investors said on Friday.
The value of the fund will be between 40 billion yuan and 80
billion yuan (5.8 billion-11.6 billion), it said.
China, the world's largest producer and consumer of steel,
has embarked on tough reforms to cut overcapacity in the sector
as part of the country's wide-ranging supply side reforms.
The fund will help the sector get rid of excess capacity,
shut down zombie enterprises, speed up mergers and
reorganisation, and promote international co-operation on
production, said Baowu chairman Ma Guoqiang at a signing
ceremony in Shanghai.
($1 = 6.8955 Chinese yuan renminbi)
(Reporting by Dominique Patton, editing by David Evans)