China establishes aviation industry fund

Singapore
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China has established its first aviation industry fund, providing a major boost for local aircraft manufacturers trying to market aircraft to Chinese carriers.

China Construction Bank says it has established the fund with China's state-owned aerospace conglomerate Aviation Industry Corporation of China (AVIC).

The $1 billion yuan ($147 million) China Aviation Industry Fund plans to raise a further 5 billion yuan in the first phase, and 1.5 billion to 2.5 billion yuan in the second phase, it says, adding that its long-term objective is to raise 20 billion yuan.

Commercial Aircraft Corporation of China VP Wu Guanghui was quoted by local media reports in March as saying that the authorities should establish an industry fund of at least 30 billion yuan to help Chinese carriers get financing for Chinese-built aircraft.