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Guodiao CHALC Industry Development Fund Inaugurated With A Size Of RMB 3 Billion

On July 13, Guodiao CHALC Copper Industry Development Fund (the Fund), jointly established by China State Owned Enterprise Structure Adjustment Fund and Aluminum Corporation of China Limited (CHALCO) was inaugurated in Beijing.

The Fund, with a size of RMB 3 billion, will reduce the financial leverage and financing costs of CHALCO Luoyang Copper Processing Group by injecting equity funds and introducing the market mechanism, help the company improve capital structure and operational efficiency, upgrade the product mix and enhance market competitiveness, and promote the reform and sustainable development of business, and the supply-side structural reform of China's copper industry.

The establishment of the Fund is an important initiative for China Chengtong, CHALCO and China State Owned Enterprise Structure Adjustment Fund to speed up financial innovation, and boost the reform, transformation and upgrading of state-owned enterprises, a significant exploration for supporting the benign and healthy development of real economy with financial services, and a major attempt of innovative cooperation between central enterprises.

CHALCO is the pacesetter in China's nonferrous metal industry, and ranks No. 1 in China's copper industry by comprehensive strength. In order to boost the supply-side structural reform of China's copper industry, and promote the rapid development of CHALCO in the industry, CHALCO and China State Owned Enterprise Structure Adjustment Fund have co-founded the Fund, opening a new chapter of industry and finance cooperation. By taking this cooperation as an opportunity, both sides will further deepen cooperation under the principle of "mutual benefit, long-term cooperation and strong support" and make greater contributions to promoting industrial structure adjustment, transformation and upgrading of CHALCO to achieve mutual benefit and common development. It's learned that the Fund has been settled in Shunyi, Beijing. The Fund will reduce the financial leverage and financing costs of CHALCO Luoyang Copper Processing Group by injecting equity funds and introducing the market mechanism, help the company improve capital structure and operational efficiency, upgrade the product mix and enhance market competitiveness, and promote the reform and sustainable development of business, and the supply-side structural reform of China's copper industry.

In 2016, China Chengtong Group initiated the establishment of China State Owned Enterprise Structure Adjustment Fund in line with the unified deployment of the State Council SASAC and with the approval of the State Council. As a "national" equity investment fund, China State Owned Enterprise Structure Adjustment Fund has steadily conducted substantial investment activities by focusing on structural adjustment and service for central enterprises, and has endeavored to play its role in optimizing the state-owned economic structure, promoting the transformation and upgrading of central enterprises, enhancing industrial concentration and improving the operation efficiency of state-owned capital.