Investment company to finance coal industry restructuring

By Hu Yuanyuan ( chinadaily.com.cn )

Updated: 2009-12-21

China's first energy industrial fund will be managed by Zhaohui Industrial Investment Fund Management, which was set up in Beijing on Sunday with an initial size of ten billion yuan($1.46 billion).

The fund will help finance the restructuring of Shanxi's coal industry, as the government works to consolidate the province's coal mines and coal companies.

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The government wants to cut the number of coal mines in Shanxi by 30 percent by 2010. Under its plan, large-scale coal companies will account for 70 percent of the province’s total coal output.

Zhaohui was co-founded by China CSM Capital Company and Shanxi Haoding Investment Company. Its top management, however, is mostly from China CSM Capital, China's first large-scale yuan-denominated equity fund management institution. China CSM has invested in 60 projects so far, and manages assets worth a total of about 20 billion yuan.