The Chinese government has issued guidelines on the development of military industry companies and various authorities to guide the reforms of these companies and integration of private capital in the industry, according to a Shanghai Securities News report Thursday, citing an unnamed official source.
The guidelines said that the country aims to reach five targets within three to five years. These include: finishing the shareholding system reform of the military industry companies, ensuring that such companies enjoy fairness in fiscal investments, tax policies, market entrance and assets investment, and completing the retreat system of the military products industry and opening and sharing the industry resources.
According to the guidelines, except for a few companies involved in the country's strategic safety, the country encourages other companies to push reforms in the shareholding system via assets restructuring, share exchanges, getting listed on the stock market and mergers and acquisitions. It also encourages qualified social capital to participate.
This guidelines aim to accelerate the reform of the shareholding system of military industry companies and provide opportunities for private capital to expand their military products, according to the report.
Various authorities are working on the details of the measures, and will make efforts to attract private capital to diversify the investment structure and create an ordered and competitive market environment, the report said.
The China Aviation Industry Corporation (AVIC) has said that it will continue to reform the company's structure and get listed on the market as soon as there is a good opportunity. China Aerospace Science and Technology Corporation (CASC) also plans to step up efforts in integration with the private capitals, research and the asset securitization of the firm.
Analysts said that amid the accelerated reforms of the industry, assets injection and strategic industries are the two major goals for investment opportunities.
The development trend for the industry includes assets securitization and integration of the private capitals and the military.
The launch and completion of the policies of the strategic industries, including the aviation equipments, new information, new material and new energy, will also lead to more profits for the companies, according to the report.
The guidelines said that the country aims to reach five targets within three to five years. These include: finishing the shareholding system reform of the military industry companies, ensuring that such companies enjoy fairness in fiscal investments, tax policies, market entrance and assets investment, and completing the retreat system of the military products industry and opening and sharing the industry resources.
According to the guidelines, except for a few companies involved in the country's strategic safety, the country encourages other companies to push reforms in the shareholding system via assets restructuring, share exchanges, getting listed on the stock market and mergers and acquisitions. It also encourages qualified social capital to participate.
This guidelines aim to accelerate the reform of the shareholding system of military industry companies and provide opportunities for private capital to expand their military products, according to the report.
Various authorities are working on the details of the measures, and will make efforts to attract private capital to diversify the investment structure and create an ordered and competitive market environment, the report said.
The China Aviation Industry Corporation (AVIC) has said that it will continue to reform the company's structure and get listed on the market as soon as there is a good opportunity. China Aerospace Science and Technology Corporation (CASC) also plans to step up efforts in integration with the private capitals, research and the asset securitization of the firm.
Analysts said that amid the accelerated reforms of the industry, assets injection and strategic industries are the two major goals for investment opportunities.
The development trend for the industry includes assets securitization and integration of the private capitals and the military.
The launch and completion of the policies of the strategic industries, including the aviation equipments, new information, new material and new energy, will also lead to more profits for the companies, according to the report.
