CCB International Establishes Aviation PE Fund

CCB International (Holdings) Limited (“CCBI”) and Aviation Industry Corporation of China (“AVIC”) jointly established China Aviation PE Fund with the objective of raising as much as RMB 5 billion in the first phase. Over a long term period the fund would raise RMB 20 billion. This is the third RMB-denominated fund successfully set up by CCBI within one and a half year. The main scope of investment of this Aviation PE Fund covers not only AVIC portfolio companies and subsidiaries of these AVIC portfolio companies, but also innovative aviation enterprises possessing new technology or those venturing into new frontiers and new business models. The Fund will soon make an investment of around RMB1 billion in AVIC's portfolio companies. Positioned in the high-end segment of the manufacturing industry, the aviation sector is a strategic and a typical hi-tech industry. It is an industry with high technological contents, large market capacity, extensive industry coverage and promising investment prospects. As the main conduit of development of the Chinese aviation sector and a well-known enterprise under the State Council, AVIC assumes a vital strategic position in China’s defence and industrial system. “The Aviation Fund will play an important role in advancing AVIC’s restructuring, mergers and acquisitions; promoting the development of the Chinese aviation sector; and drawing support from CCBI’s powerful financial platform and solid fund management experience in building up the Chinese military,” says Dr. Hu Zhanghong, chief executive officer of CCBI. CCBI has been spending much effort in nurturing the fund business and preparing actively for the establishment of a number of RMB-denominated PE funds. In addition to the Aviation Fund, it successfully set up earlier this year the Wanjiang Industrial Region Transfer PE Fund. For the rest of this year, it will set up a number of RMB-denominated funds such as Environment Protection PE Fund, Culture PE Fund and Resources Venture Fund. By the end of this year, the size of its RMB-denominated PE fund business will reach around RMB15 billion.