BEIJING, April 7 (Reuters) - China is aiming to raise as much as 80 billion yuan ($11.60 billion) for a special investment fund to help finance the restructuring of its steel industry, a statement said on Friday.
The fund will be run by a management vehicle in which top Chinese steelmaker China Baowu Steel Group, the U.S.-China Green Fund and China Merchants Group have each contributed 1 billion yuan as seed capital, a statement issued by the investors said on Friday.
The value of the fund will be between 40 billion yuan and 80 billion yuan (5.8 billion-11.6 billion), it said.
China, the world’s largest producer and consumer of steel, has embarked on tough reforms to cut overcapacity in the sector as part of the country’s wide-ranging supply side reforms.
The fund will help the sector get rid of excess capacity, shut down zombie enterprises, speed up mergers and reorganisation, and promote international co-operation on production, said Baowu chairman Ma Guoqiang at a signing ceremony in Shanghai. ($1 = 6.8955 Chinese yuan renminbi) (Reporting by Dominique Patton, editing by David Evans)