It is reported that taking advantage of a central government-backed plan to develop the coast of Liaoning province, Liaoning Cheng Da will form an industrial fund company in Dalian with a scale of CNY 5 billion as well as a related management firm with Yifang Group.

Cheng Da and Yifang Group plan to subscribe to CNY 600 million and CNY 400 million respectively to the fund that will run in form of a partnership. The first phase of the fund aims to collect CNY 2 billion and Chengda and Yifang will contribute CNY 200 million and CNY 100 million respectively.

The fund management firm will have registered capital of CNY 50 million of which Chengda and Yifang Group will contribute 30 million and CNY 20 million respectively.

Guangfa Securities reported that its subsdiairy, Gangfa Xingde Investment Management firm planned to subscribe to 400 million to the fund and contribute CNY 2.5 million to the management firm formation. However, the securities company canceled the plan following the release of guidelines for securities on direct investment that would allow the brokerage firms to directly set up a direct investment fund.

(Sourced from yicai.com)