Ping An Securities, a brokerage affiliated with Ping An Insurance, said on Thursday it is planning to set up a 20 billion yuan (US$2.89 billion) asset management plan and promote the issuance of special debts, in order to bail out private enterprises, Yicai.com reported.
The asset management plan will be established with its own funds, along with external and social funds from banks and insurance companies.
Ping An will select promising and valuable private companies to invest in by means of equity and debt investment.
The company also said that it will cooperate with local governments or state-owned enterprises (SOEs) to underwrite special debts, aiming to resolve local governments’ lack of funds and further expand the funding channels for private enterprises with the liquidity issue.
So far, more than 11 securities companies have announced they will set up such asset management plans to help private companies. China Galaxy Securities plans to established funds totalling 60 billion yuan with SOEs and financial institutions to help private enterprise.
The private enterprise bailout fund initiated by the Western Securities also reached 10 billion yuan.