Twenty-four companies backed by the provincial government of Central China’s Henan plan to jointly set up a RMB 30 billion ($4.6 billion) credit guarantee fund to assist local enterprises in dealing with debt risks, a Henan government official told Caixin.
The fund, which was registered Tuesday with RMB 4 billion of registered capital, will raise RMB 5 billion in the first phase.
Henan government-controlled Zhongyuan Yuzi Investment Holding Group led the investment with a 25% stake. Henan Energy and Chemical Industry Group, parent of debt-ridden Yongcheng Coal and Electricity Holding Group, also took part in the fund with a 1.25% holding, business registration records showed.
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