Small and medium sized enterprises (SMEs)
In FY2000 IFC arranged and invested in the Sichuan Investment Fund (SSIF), providing US$4.5 million to the initial equity of US$22.5 million. The project will mobilize much needed capital to SMEs and will provide a strong demonstration effect to both international investors and local banks. By strengthening private SMEs, SSIF will promote growth and employment in Sichuan province, where income levels and economic growth lag behind the more prosperous coastal areas.
Financial services
In FY2000 IFC made an initial investment of US$23.5 million for a minority position in New China Life Insurance Co. (NCL), the only private insurance company in China. The investment finances NCL's expansion and will give the company access to international management know-how and technology. The project will prepare the company for a more competitive environment that will follow China's anticipated entry to the World Trade Organization. With 97% of the Chinese insurance market controlled by state-owned companies, the investment promotes better services and improved efficiency in the insurance industry. Private plans for life, health care, and retirement will create alternative mechanisms for social protection.
Chemicals
In FY1999, IFC provided a US$16 million loan, along with a US$3.2 million equity investment, to support the privatization of a Chengdu based chemical company. Owing to IFC's help Chengdu Huarong Chemical Company Lmt. will be the first domestic producer of high-purity KOH flake, a chemical used in a large number of consumer products. Substituting imports with domestic production will promote growth economic. Through the use of modern, efficient, less-polluting technology, the plant will also set an example for the chemical industry.
|
RSS