China warship builder to raise $1.4b

State-owned China Shipbuilding Industry (601989.SHA) is planning a US$1.4 billion private placement to fund the acquisition of warship building assets, Reuters reported. The move comes as China creates its own military-industrial complex, with the private sector seen taking a key role. China has unveiled a double-digit rise in its 2013 military budget, with spending on the People’s Liberation Army (PLA) set to rise 10.7%. A key supplier to the PLA, China Shipbuilding Industry said it was the first time China was going to the capital market to fund the buildup of its core military.