DeHeng Provided Legal Services for the Establishment
of Beijing CCTFUND-CHALCO Copper Industry Development Fund

2017-07-17

The inauguration ceremony of the Beijing CCTFUND-CHALCO Copper Industry Development Fund jointly established by China State-owned Enterprise Structural Adjustment Fund and CHALCO was held in Beijing on July 13, 2017. DeHeng Law Offices provided professional legal services for the establishment of the fund.

The establishment of Beijing CCTFUND-CHALCO Copper Industry Development Fund is an important measure taken by China Chengtong Holding, CHALCO and China State-owned Enterprise Structural Adjustment Fund to accelerate the financial innovation of state-owned enterprises and help the state-owned enterprises to turn around through reform, upgrading and transformation. This is a key exploration for industrial financial services to support a sound and healthy development of industry and a key attempt in innovation and cooperation among state-owned enterprises.

The size of the fund totals RMB 3 billion. The fund, through the injection of equity funds and the introduction of market-oriented mechanism, will effectively reduce the financial leverage and financing costs of Chinalco Luoyang Copper Processing Group, improve capital structure and operational efficiency, upgrade product mix, enhance its market competitiveness, promote its profitability and sustainable development through reform, and spur the supply-side structural reform of the copper industry in China.

The CCTFUND-CHALCO Copper Industry Development Fund is an important attempt and active exploration of fund raising for supporting the innovative development of state-owned enterprises and finding a new path for financial cooperation of state-owned enterprises. It is of great significance to deepening the reform and development of state-owned enterprises and enhancing the vitality and competitiveness of state-owned enterprises. The fund raising is expected to become a model for the reform and development of state-owned enterprises in the future.

Attorneys Mou Hongbao and Liu Zhen from DeHeng Law Offices provided timely, professional and efficient legal services for the establishment of the fund.