Fund to boost financing needs of central state-owned enterprises

Supported by 32 central SOEs, such as State Grid Corp of China, the credit assurance fund to date has raised 10 billion yuan. It is designed to provide emergency financial funding to central SOEs with short-term cash-flow issues resulting in an inability to prevent defaults

CHINA has established a bailout fund with a fundraising target of 100 billion yuan (US$14.24bil) to support centrally administered state-owned enterprises (SOEs) short on cash to avoid possible bond defaults, said the country’s top State-assets regulator.

Supported by 32 central SOEs, such as State Grid Corp of China, the credit assurance fund to date has raised 10 billion yuan.