- The Metallurgical Corporation of China (601618.SS) has announced it has received a RMB 350 billion investment from China’s state-owned Enterprise Structure Adjustment Fund Co., a semi-government organization, according to eastmoney.
- The fund will acquire 24.76 million non-public shares with a lock-in period of 12 months.
Why It Matters:
- The share price of the Metallurgical Corporation of China jumped almost 7% on the Shanghai Stock Market after the announcement. Market players are expecting follow-up capital structure changes following the investment, such as asset injections.
- The investment also rekindled investment excitement surrounding state-owned reform. Companies such as Beijing Urban Rural Commercial (600861.SS), Shanghai No.1 Pharmacy (600833.SS), and Shenzhen Topway Video Communication (002238.Sz) have became targets for local hedge funds in speculation concerning state-owned enterprise (SOE) reform.